Ripple SEC Lawsuit Update: SEC Targets XRP as “Digital Asset Security” While XRP Eyes $2
The ongoing Ripple SEC lawsuit has seen a new development as the U.S. Securities and Exchange Commission (SEC), led by Chair Gary Gensler, signals its intention to revive claims about “digital asset securities.” This comes amid a potential XRP price rally to $2, spurred by the expectation of Gensler’s resignation and a resolution to the lawsuit.
SEC Reiterates Focus on “Digital Asset Securities”
In a recent speech at the 56th Annual Institute by PLI, Gensler clarified that Bitcoin is not a security but avoided explicitly mentioning XRP alongside Bitcoin, Ether, and stablecoins. This omission, paired with his remarks about the broader crypto market, which he categorized as comprising assets often sold as securities, fueled speculation that the SEC is targeting XRP as a security once again.
The SEC’s appeal in the Second Circuit Court aims to contest parts of the Ripple case, including XRP sales by Ripple and its executives. Crypto lawyer James Murphy (MetaLawMan) criticized the SEC for defying court rulings and continuing to use the term “digital asset securities” in legal contexts. https://x.com/SECGov/status/1859325620364206264?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1859326108287512930%7Ctwgr%5Ef0645910a21a88651e633af7136fb5b6d5b627af%7Ctwcon%5Es3_&ref_url=https%3A%2F%2Fcoingape.com%2Fripple-sec-lawsuit-agency-reiterates-digital-assets-securities-as-xrp-eyes-2%2F
Ripple Executives and Legal Outlook
Ripple CEO Brad Garlinghouse and CTO David Schwartz remain optimistic about the case’s resolution, with speculation that the lawsuit may be dismissed or settled after Donald Trump’s inauguration. Schwartz emphasized that Ripple’s obligations are to its shareholders, not XRP holders, and asserted that XRP prices are independent of Ripple’s efforts.
Lawyer Bill Morgan echoed this sentiment, noting that long-term XRP price trends are driven by market forces rather than company actions.
XRP Price Targets $2 Amid Bullish Momentum
XRP has shown strong performance, currently trading at $1.13 after a 60% weekly gain. Analysts predict further bullish movement, with potential price targets between $1.6 and $2. CredibleCrypto, a popular analyst, suggests XRP could achieve a new all-time high sooner than expected, pointing to a 250% upside based on recent technical trends.
Market Sentiment and Broader Implications
The crypto community has called for the dismissal of the Ripple lawsuit and Gensler’s resignation. Additionally, President-elect Trump’s pro-crypto stance is expected to boost market confidence, contributing to XRP’s bullish sentiment. Trading volume for XRP has risen 7% in the past 24 hours, indicating growing interest among traders.
As the lawsuit progresses and market narratives evolve, Ripple and XRP remain at the center of attention, with investors closely watching for any signs of a resolution or price breakout.
