Since almost three years ago, Ripple and the SEC have been engaged in legal conflict. Chris Larsen and Brad Garlinghouse are fully dedicated to continuing their legal fight against the SEC until they triumph.
Three things could drive Ripple (XRP) to soar in 2023 despite the XRP community’s eagerness to learn the latest case-related developments.
Ripple Wins: Judge Torres Rejects SEC Appeal
Suppose Judge Analisa Torres rejects the SEC’s appeal against Ripple. In that case, it may result in a price increase for XRP and encourage lawmakers and regulators from other US jurisdictions to cooperate on a comprehensive regulatory framework for digital assets.
Judge Torres’ declaration that XRP is not a security caused an increase in price of almost 70% in July. Insisting that the judgment might impact future cryptocurrency-related cases, the SEC promptly filed an appeal.
Given how dissimilar the underlying infrastructure of XRP is from other DeFi currencies, these situations are, however, in no way comparable to those of Ripple. That indicates that the SEC is placing all their eggs in one basket.
Agreement between Ripple and SEC
The terms and conditions of any hypothetical (but likely) settlement between Ripple and the SEC would significantly impact the price of XRP.
To be fair, though, most cryptocurrency projects that had fought the SEC have settled; they pay the SEC a certain sum, and the matter is dismissed.
Due to the negative implications, a settlement wouldn’t be the best news for XRP, already down 70% from its previous highs in July, back to $0.50 at the time of writing.
Although it may allow the company’s founders to return to concentrating on Ripple rather than court battles with the SEC, the company’s founders have stated they have no intention of entering into a settlement and instead intend to continue their legal struggle with the SEC.
ODL Integration in US Institutions
Poor data flow between intermediaries is a significant problem with today’s payment infrastructure, leading to payment delays and supplementary costs. Here is where ODL, or On-Demand Liquidity, might cause a significant increase in XRP.
ODL is RippleNet’s liquidity management service that allows prompt and easy conduct of cross-border payments without middlemen. Customers and financial institutions can use it.
The basic idea behind ODL is that liquidity is obtained from a pool of XRP, and because this liquidity is only gotten when there is demand, it can be obtained at a reasonable cost.
Following the partial victory in July, Ripple representatives anticipate that some American financial institutions will implement ODL to their platforms or, at the very least, feel more comfortable discussing the issues they face with their company’s payment rails and cross-border transactions.