Ripple has been caught in an ongoing legal battle against the SEC for almost three years now, and it seems Chris Larsen and Brad Garlinghouse are fully committed to fighting the regulatory agency until they get a decisive victory.
While the XRP community is eager to see the latest developments in the case, here are three things that could cause Ripple (XRP) to explode in 2023.
Ripple Wins: Judge Torres Denies SEC Appeal
If Judge Analisa Torres denies the SEC appeal against Ripple, not only could it possibly bring price appreciation for XRP but also push regulators and lawmakers across different jurisdictions in the US to work on a clear and thorough regulatory framework for cryptocurrency assets.
Back in July, XRP surged over 70% after Judge Torres stated that XRP is not a security. The SEC immediately moved forward to appeal the ruling, stating that this decision could affect other cryptocurrency-related cases.
However, these cases are nowhere similar to Ripple’s, considering how different XRP’s underlying infrastructure is from most DeFi tokens. That just means the SEC is putting all their eggs in a single basket.
US Institutions Integrating ODL
A major issue with today’s payment infrastructure is poor data flow between intermediaries, causing delays and added expenses to payments. This is where ODL, On-Demand Liquidity, can trigger a massive uptick for XRP.
ODL is RippleNet’s liquidity management solution, a product that customers, such as financial institutions, can leverage to execute cross-border payments instantly and seamlessly without intermediaries.
The gist of ODL is that liquidity is sourced from a pool filled with XRP, and the cost of sourcing this liquidity is low because it only occurs when there’s demand — hence the name.
Following July’s partial victory, Ripple representatives expect several American financial institutions will move forward with implementing ODL to their platforms or at least feel more comfortable talking about the problems they experience with their business when it comes to payment rails and cross-border transactions.
Settlement Between Ripple and the SEC
What effects a theoretical (but probable) settlement between Ripple and the SEC would have on XRP’s price depends heavily on the terms and conditions in that agreement.
But, to be fair, most crypto projects that had battled against the SEC have agreed to a settlement; they pay a specified amount to the SEC, and the case is dropped.
Due to the negative implications, a settlement wouldn’t be the best news for XRP, which is already down 70% from its previous highs in July, back to $0.50 at the time of writing.
While it can allow founders to go back to focus on Ripple instead of legal battles with the SEC, its founders have expressed they have no intentions for a settlement and instead want to fight the SEC all the way through.
The post 3 Things That Could Cause Ripple (XRP) to Explode This Year appeared first on CryptoPotato.
