Recently, Ripple CEO Brad Garlinghouse revealed that his company is ready to explore a different path if it loses the SEC lawsuit. In fact, he specifically claimed that the company was willing to consider moving to another jurisdiction, SI Ripple is losing the lawsuit against the SEC.
It is no surprise that Ripple is willing to end its operations in the United States. There does not appear to be an end in sight to the lawsuit and the SEC has renewed its determination against Ripple’s legal team.
In fact, new reports have revealed that the SEC has adopted a new, more aggressive strategy against the blockchain company across the Wow complaint.
A dark cloud of uncertainty
Filed in July, the Wahi complaint adds insider trading allegations against 2 Coinbase employees. He also argues that 9 other cryptocurrencies are securities. This aggressive push from the SEC could create more problems for the crypto market if the SEC wins the case.
Such an outcome will also push Ripple into uncertain territory since its services will likely not be available in the US if it moves to another country.
The SEC is using the Wahi case to try to declare these 9 crypto assets as securities without having to face @CoinbaseThe legal team of. The SEC learned the lessons of the confrontation @RippleThe legal team of. https://t.co/2xeTxW4L8A
— John E Deaton (213k followers, beware of imposters) (@JohnEDeaton1) August 28, 2022
An unfavorable outcome for Ripple could put a damper on its ODL operations, especially since the United States is one of the largest financial markets in the world.
If US banks do not agree with the ODL plans, it could weaken the adoption potential of Ripple’s CBDC infrastructure.
Assess the potential impact on XRP
An unfavorable outcome in the SEC lawsuit could further dampen investor sentiment. Note, however, that Ripple has already launched many corridors for the ODL service. This represents an existing demand driver for XRP and would likely cushion XRP’s downfall to some degree.
XRP has been trading alongside its short-term price support level since last week. A slight dip below this support is a sign that the support is weakening. It’s no surprise, as the SEC continues to hit harder in a fight against the crypto market.
XRP’s press time outlook highlighted the uncertainty prevailing in the market. In fact, there has been very little engagement over the past 7 days, despite the new support test.
This result is highlighted by the absence of a substantial increase in daily active addresses. XRP’s 7-day MVRV has also been on a downward trajectory since August 25, confirming the bearish sentiment around the altcoin.
On the contrary, a slight increase in active addresses has also been observed in the last 24 hours.
Nonetheless, XRP’s price action has shown no signs of a potential pivot and may come under additional selling pressure this week.