What Will Happen to the XRP Price if Ripple Loses its Case Against the US SEC

Turkish lire; Dr

• If Ripple loses the SEC lawsuit, the price of XRP could decline significantly, and the entire cryptocurrency market could see increased volatility.
• The regulator initially sought a penalty of $2 billion, but the latest proposal is $102.6 million, while the company is demanding a fine not to exceed $10 million.

Potential impact

the lawsuit Ripple and the US Securities and Exchange Commission (SEC) entered its beta phase in April this year.

Some may see the company as having the upper hand, considering its three partial victories in court Believer Throughout 2023. However, the regulator also has a chance to emerge victorious. As such, we decided to ask ChatGPT what would happen to the price of XRP if Ripple loses the case.

The AI ​​chatbot estimates that such a decision is possible Leads to a significant decrease in The value of the asset since “investor confidence”. rock“.

Ripple could also face heavy fines and be required to modify its operating practices, which could significantly damage its reputation and lead to reduced adoption and use of XRP.

ChatGPT additional He claimed that an SEC win would mean Ripple's native token would be classified as a security, leading to stricter regulatory oversight. The impact on the employment of XRP in global financial services and cross-border transactions may also be among the setbacks.

Last but not leastThe potential loss of Ripple could negatively impact the entire cryptocurrency market.

“The decision could lead to significant market volatility, with a potential decline in the prices of various cryptocurrencies due to increased uncertainty and fear of further regulatory action,” ChatGPT concluded.

From $2 billion to $102 million

The size of the potential Ripple penalty It has become a major issue in The suit. First, the SEC to request The company was fined a staggering $2 billion, accusing it of conducting an unregistered securities offering by selling its XRP token.

Ripple has opposed the idea, claiming that the amount should be as such do not pass 10 million dollars. One of its main reasons is that there are no direct allegations of fraud in its case against the agency (unlike the case between the SEC and Terraform Labs, where the defunct cryptocurrency company Agreed To pay a civil fine of $420).

Recently, the Commission has softened its tone, suggestion $102.6 million fine:

“Ripple avoids comparing the Terraform settlement penalty to the gross profit of the infringing conduct. This ratio ($420 million/$3.587 billion) is much higher: 11.7%. Applying it to gross earnings of $876.3 million, the Securities and Exchange Commission here The court is asked to waive, Leading It is a much larger number, a fine of $102.6 million, compared to the $10 million ceiling that Ripple insists on.

The lawsuit between Ripple and the SEC is complex and dates back to December 2020. For those curious about its details and its potential impact on the price of XRP, feel free to take a look at our dedicated video below: