XRP (CRYPTO: XRP) has been on a remarkable upward trajectory, gaining 400% over the past four months and recently trading at approximately $2.50. Yet, this impressive rally might just be the beginning. A long-awaited decision in the ongoing legal battle between Ripple, the company behind XRP, and the Securities and Exchange Commission (SEC) could serve as a major catalyst for further growth.
Ripple vs. SEC: The Backstory
Since December 2020, Ripple has been embroiled in a legal dispute with the SEC, centered on whether XRP should be classified as a security or a commodity. The case has relied heavily on the Howey Test, a legal framework from a 1946 Supreme Court case involving Florida orange groves. This outdated precedent has contributed to the case’s protracted timeline, making it difficult for the crypto industry to predict an outcome.
Fortunately, the end may be near. A decision is expected around April 16, marking a potential resolution to a four-year saga. Markets thrive on certainty, and a positive ruling for XRP could trigger a sharp increase in its price.
Why XRP Could Benefit
The SEC has dismissed several high-profile crypto lawsuits this year, but the case against Ripple remains unresolved. Despite filing an appeal in January, the SEC has been notably quiet about this specific case.
Analysts believe the odds are increasingly in Ripple’s favor. The pro-crypto stance of the Trump administration has bolstered confidence that any resolution will benefit XRP. Additionally, the administration could use tools like executive orders or Senate investigations into regulatory overreach to close the case if needed.
How High Could XRP Go?
If the SEC lawsuit concludes in XRP’s favor, analysts believe the token could reclaim its previous all-time high of $3.84. In an even more optimistic scenario, where XRP gains inclusion in a proposed Crypto Strategic Reserve or launches a spot exchange-traded fund (ETF), the price could surge to $10 or more.
The approval of a spot ETF would be a particularly transformative event, as it would attract fresh investment into XRP. Current projections from Bloomberg suggest a 65% likelihood of an XRP spot ETF being approved if the regulatory uncertainty surrounding Ripple is resolved.
The Bigger Picture
For investors, the next 45 days present a critical window of opportunity. The resolution of the Ripple vs. SEC case could eliminate one of the most significant regulatory risks facing the crypto market, unlocking new growth potential for XRP and the broader industry.
While XRP’s future is still tied to the outcome of this legal battle, the combination of a favorable ruling, potential ETF approval, and broader market adoption makes it an enticing investment prospect.
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