The U.S. Securities and Exchange Commission (SEC) has recently closed significant lawsuits against various crypto firms, yet the Ripple
$
2case remains ongoing. The closure of cases involving companies like Kraken, Cumberland, and Consensys highlights the distinct treatment of Ripple, prompting inquiries into why it is being handled differently. Experts suggest that structural differences and legal procedures are the reasons for this separation, while the market observes a decline in XRP prices alongside a surge in trading volume.
Why is the Ripple Case Treated Differently?
According to Fox Business reporter Eleanor Terrett, the Ripple lawsuit stands out due to its unique structure. Terrett points out that the SEC is applying a different legal procedure to Ripple, which has prolonged the process. For the SEC to proceed, it must request Judge Analisa Torres to lift the current injunction, complicating the case further compared to others. In contrast, the SEC’s lawsuits against other firms concluded in a simpler manner. The cases against Kraken, Cumberland, and Consensys were closed without any material obligation arising, resulting in a dismissal that imposed no additional burdens on those companies. However, the Ripple lawsuit is fundamentally different, drawing attention due to both the nature of the proceedings and the claims involved.
XRP Prices Decline While Trading Volume Rises
Developments in the Ripple case are influencing not just legal standings but also the cryptocurrency market. XRP prices have significantly decreased during the day, with similar downward trends observed on weekly and monthly charts. Interestingly, trading volume has increased during this same period, leading to varied expectations and opinions among investors. Experts attribute the price drop largely to the prolonged nature of the lawsuit, as investors are eager to shape XRP’s future based on the verdict. Investment decisions have increasingly hinged on the SEC’s upcoming actions, creating an environment of uncertainty that amplifies market volatility. While some investors view this decline as a buying opportunity, others are adopting a cautious wait-and-see approach. The longer the legal proceedings drag on, the deeper this fragility in the market may become. Scenarios regarding XRP’s future are influenced not only by the direction of the legal process but also by the market’s reactions to these developments.
