What Would the XRP Price be if the Ripple v. SEC Lawsuit Didn’t Happen?

The lawsuit between Ripple Labs and the US Securities and Exchange Commission began in 2020 and is currently in its pilot phase. There is no telling when it might end and who the winner will be, although Ripple has scored some wins before the trial begins.

The court’s main goal is to determine whether XRP should be classified as a security or not, and therefore, whether Ripple (the company behind it) conducted an unregistered sale of securities when distributing its tokens to investors.

This is a big decision that will likely impact the legal status of XRP in the eyes of regulators, and therefore, it is quite possible that many investors will take it into consideration.

We decided to ask ChatGPT what would have happened to the price of XRP if this lawsuit had never happened.

Will the price of XRP be higher?

ChatGPT acknowledges that this is a subject of speculation and states that there are several factors to consider before determining whether the price will be higher.

First, market sentiment. AI says the lawsuit created a great deal of uncertainty and negatively impacted investor confidence. Without that, market sentiment might have been more positive.

Additionally, without legal issues, Ripple will likely be able to establish more partnerships with companies and financial institutions, leading to increased adoption.

Several exchanges also removed XRP or restricted its trading in the days when the lawsuit was first filed. While many of them have since put it back into circulation, this certainly hurts XRP’s accessibility and trading volumes.

The absence of a lawsuit would provide more regulatory clarity for XRP, making it a more attractive institutional investor wary of legal uncertainties.

The chatbot concludes:

To measure this, one can look at historical data from the periods leading up to the lawsuit and compare it to the performance of other major cryptocurrencies. However, any estimate is still just speculation. Overall, experts believe that without the lawsuit, the price of XRP would likely be much higher, reflecting its potential and market adoption without the legal consequences.