Ripple has been in an ongoing legal battle against the SEC for almost three years, and it looks like Chris Larsen and Brad Garlinghouse are determined to battle the regulator until they achieve a decisive victory.
While the XRP community waits 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 Dismisses SEC Appeal
If Judge Analisa Torres rejects the SEC appeal against Ripple, it would not only bring price appreciation for XRP. It also challenges regulators and lawmakers in different jurisdictions in the United States. cryptocurrency may push them to work on a clear and comprehensive regulatory framework for their assets.
In July, XRP rose over 70% after Judge Torres stated that XRP was not a security. The SEC immediately took action to appeal the decision, stating that this decision could also affect other cases related to cryptocurrencies.
However, considering how different XRP’s underlying infrastructure is from most DeFi tokens, these cases are nowhere similar to Ripple’s.
US Institutions Integrating ODL
One of the biggest problems of today’s payment infrastructure is the poor data flow between intermediaries, which causes payment delays and additional costs. At this point, ODL (On-Demand Liquidity) can trigger a big rise for XRP.
ODL is RippleNet’s liquidity management solution, a product that customers such as financial institutions can leverage to instantly and seamlessly process cross-border payments without intermediaries.
The essence of ODL is that liquidity is provided from a pool filled with XRP and the cost of providing this liquidity is low. Because it only happens when there is demand – hence the name.
After the partial victory in July, Ripple representatives hope that many American financial institutions will move forward with implementing ODL on their platforms, or at least feel more comfortable talking about the problems they have with their business when it comes to payment rails and cross-border transactions.
Settlement Between Ripple and SEC
What impact a theoretical (but possible) deal between Ripple and the SEC would have on the price of XRP depends largely on the terms and conditions in that deal.
However, to be fair, most crypto projects fighting against the SEC have agreed to a settlement. They pay a certain amount to the SEC and the case is dropped.
Due to its downside, a deal would not be the best news for XRP, which is down 70% from its July high to $0.50 at the time of writing.
While it may allow the founders to focus on Ripple instead of legal battles with the SEC, the founders have stated that they do not intend to make a deal and instead want to fight the SEC all the way.