Ripple has been engaged in a legal battle against the SEC for nearly three years, with Chris Larsen and Brad Garlinghouse determined to fight the regulatory agency until they achieve a definitive victory.
While the XRP community eagerly awaits updates on the case, here are three factors that could lead to a significant increase in Ripple (XRP) in 2023.
Ripple Wins: Judge Torres Denies SEC Appeal
If Judge Analisa Torres denies the SEC’s appeal against Ripple, it could not only potentially result in a rise in XRP’s value, but also encourage regulators and lawmakers in various jurisdictions across the US to establish a clear and comprehensive regulatory framework for cryptocurrency assets.
Back in July, XRP experienced a surge of over 70% after Judge Torres declared that XRP is not a security. The SEC promptly appealed the ruling, expressing concerns about its potential impact on other cryptocurrency-related cases.
However, it is important to note that these cases differ significantly from Ripple’s situation, as XRP’s underlying infrastructure is distinct from that of most DeFi tokens. This means that the SEC is focusing all its attention on one particular case.
US Institutions Integrating ODL
A major issue with the current payment infrastructure is the lack of efficient data flow between intermediaries, leading to delays and additional costs. This is where On-Demand Liquidity (ODL) can have a significant impact on driving XRP’s growth.
ODL is RippleNet’s liquidity management solution, which allows customers, including financial institutions, to facilitate instant and seamless cross-border payments without relying on intermediaries.
In simple terms, ODL sources liquidity from a pool of XRP, and the cost of obtaining this liquidity is low because it only happens when there is demand – hence the name “On-Demand Liquidity.”
Following the partial victory in July, Ripple representatives anticipate that several American financial institutions will move forward with integrating ODL into their platforms or, at the very least, feel more comfortable discussing the challenges they face in terms of payment rails and cross-border transactions.
Settlement Between Ripple and the SEC
The impact of a potential settlement between Ripple and the SEC on XRP’s price heavily depends on the terms and conditions agreed upon in that settlement.
However, it is worth noting that most crypto projects that have battled against the SEC have ultimately reached a settlement by agreeing to pay a specified amount to the SEC, resulting in the case being dropped.
A settlement would not be the best news for XRP due to the negative implications, as its price is already down 70% from its previous highs in July, currently sitting at $0.50 at the time of writing.
Although a settlement could allow Ripple’s founders to refocus on their company instead of engaging in legal battles with the SEC, they have expressed their determination to fight the SEC until the end.