Recently, Ripple CEO Brad Garlinghouse revealed that his company is willing to explore another path if they lose the SEC lawsuit. In fact, he specifically claimed that the company is willing to explore moving to another jurisdiction if Ripple loses its lawsuit against the SEC.
Not surprisingly, Ripple is ready to end its US operations. It appears that there is no end in sight to the lawsuit and the Securities and Exchange Commission has updated its decision against Ripple’s legal team.
In fact, recent reports revealed that the SEC has taken a new and more aggressive approach against the blockchain company through the Wahi complaint.
A dark cloud of uncertainty
Wahi’s complaint, filed in July, adds to allegations of insider trading against two Coinbase employees. It also claims that 9 other digital currencies are securities. This strong push by the SEC could lead to more trouble for the crypto market if the SEC wins the case.
Such an outcome would also push Ripple into an uncertain territory where its services are unlikely to be available in the United States if it moved to another country.
The SEC is using the Wahi case as a way to attempt to declare these nine crypto assets as securities without having to confront Tweet embedLegal team. The Securities and Exchange Commission has learned lessons from the confrontation @rippleLegal team. https://t.co/2xeTxW4L8A
– John E Deaton (213000 followers Beware Scammers) (@JohnEDeaton1) August 28, 2022
Ripple’s unfavorable outcome may cause a wrench in its ODL business, especially since the US is one of the largest financial markets in the world.
If US banks do not join the ODL scheme, it could weaken the possibility of Ripple’s CBDC adoption of the infrastructure.
Assessment of the potential impact on XRP
An unfavorable outcome in the SEC’s action may dampen investor sentiment. However, it should be noted that Ripple has already launched several lanes for the ODL service. This represents an existing demand driver for XRP and is likely to mitigate the XRP decline somewhat.
XRP has been trading alongside the short-term price support level since last week. A slight downtrend below this support indicates weakness of the support. Not surprisingly, the SEC continues to crack down on the cryptocurrency market.
The press time forecast for XRP confirmed the uncertainty prevailing in the market. In fact, there has been very little interaction in the past seven days, despite the retesting of support.
This result is highlighted by the lack of a significant increase in daily active addresses. XRP’s 7-day MVRV ratio has also been on a downtrend since August 25, confirming the downtrend surrounding the altcoin.
Conversely, a slight increase in active titles was also observed in the last 24 hours.
However, XRP price action has not shown any signs of a potential pivot and may see more selling pressure this week.