The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has taken a new twist. The SEC is making moves to challenge a previous court decision in favor of the crypto company. Will XRP crash again?
Background on the Ripple SEC Lawsuit
To understand the current situation, it’s vital to look back at the origin of the conflict. The SEC had previously accused Ripple Labs of conducting an unregistered securities sale when it launched its XRP token. This contention has been a significant point of contention between the two entities.
This lawsuit led to a severe crash in XRP prices back in December 2020, while the crypto market continued higher.
Ripple Wins SEC Lawsuit: What Happened?
A recent court ruling seemed to favor Ripple Labs. The judgment asserted that XRP, contrary to the SEC’s claims, cannot be categorized solely as a security. This decision was seen as a significant victory for Ripple Labs and had considerable implications for the broader cryptocurrency market.
SEC Appeal Decision – is XRP Back in Danger?
However, the story hasn’t ended there. The SEC, unwilling to let the matter rest, has indicated its intent to appeal the decision. They believe they have grounds to challenge the court’s ruling and are preparing to escalate the matter.
Implications for Ripple: Wil XRP Crash Again?
If the SEC succeeds in its appeal, it could pose challenges for Ripple Labs. A reversal could see the firm facing penalties and having to make adjustments to its operations. Moreover, XRP prices will definitely take a toll and go lower, especially with the current crypto market dynamics.
Will XRP crash again? Well, it seems so far that over the short/medium term, XRP might crash lower and adjust all the gains that happened from the previous win. However, we should see a strong support