XRP Price Could Rise Significantly if Ripple Wins SEC Case, Analysts Say

The ongoing legal battle between Ripple, the company behind the cryptocurrency XRP, and the U.S. Securities and Exchange Commission (SEC) has sparked optimism among analysts. They believe a favorable outcome could significantly boost XRP's price.

The SEC sued Ripple in December 2020, alleging that the company's sale of XRP to institutional investors violated U.S. securities laws. Last year, Judge Analisa Torres ruled that XRP was not a security. However, the SEC subsequently appealed this decision, leaving the future of XRP uncertain.

Analysts like Carlos Guzman, a research analyst at GSR, suggest that a dismissal of the SEC's appeal, or a settlement under new SEC leadership, would be a major victory for Ripple. This positive resolution, Guzman told DL News, could cause XRP's price to surge.

The upcoming change in U.S. presidential administration is also a factor. With the new administration taking office, there is hope within the crypto community, including Ripple, for a shift in the regulatory landscape. This anticipation has contributed to recent price increases in the crypto market. The nomination of pro-crypto figures to key regulatory positions, including the SEC, further fuels this optimism.

A favorable legal outcome could elevate XRP's status among digital assets, potentially paving the way for an XRP exchange-traded fund (ETF). Bloomberg ETF expert Eric Balchunas anticipates a surge in crypto ETFs, particularly given the success of spot Bitcoin ETFs, and suggests XRP could be among the first to gain approval. However, Guzman cautions that any new crypto ETF faces a potentially lengthy approval process.

Ripple also anticipates growth through increased adoption of its new stablecoin, RLUSD, which could solidify its position as a legitimate payment option. The recent resurgence of retail interest in XRP may also contribute to renewed investor attention if the legal situation resolves favorably.