Ripple SEC Lawsuit: XRP Eyes $2 as SEC Pushes “Digital Assets” Tag

The U.S. Securities and Exchange Commission (SEC) is persisting in classifying XRP as a “digital asset security.” This move comes as Ripple’s legal battle gains momentum, and XRP’s price surged past $1, with potential highs near $2.

Market sentiment is driven by speculation over SEC Chair Gary Gensler’s potential resignation and Ripple lawsuit resolution during Trump’s presidency.

Ripple Battles SEC as XRP Momentum Builds

Ripple is contesting its sales and distributions of the digital asset, and the SEC is appealing the court’s summary judgment on XRP. The regulator contests ripple executives Brad Garlinghouse and Chris Larsen for their XRP transactions on exchanges. The crypto community criticized the SEC for failing to heed a court’s earlier ruling on XRP’s non-security status.

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The rise in confidence in the market over XRP has been partially driven by strong support from Ripple executives and the bullishness of the crypto community.

Ripple CTO David Schwartz noted that Ripple’s efforts do not affect the price of XRP. However, traders say a settlement or dismissal of the case could catalyze further price gains.

Now, at $1.12, prices are increasing as more investors take interest. Analysts expect a move to the $1.6 – $2 range if bullish momentum holds. This reflects larger market trends, with the prevailing optimism around more favorable crypto policies, as the winds could blow more political shifts.

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Gensler’s Bitcoin Stance Fuels XRP Debate

SEC Chair Gary Gensler voiced Bitcoin’s non-security status, sparing XRP, Ether, and stablecoins with similar clarity. His comments only strained further as an agency already focusing on treating other digital assets as securities.

Prominent lawyers who are crypto advocates slammed the SEC for abusing words like ‘digital asset securities’. Even though it’s been reprimanded previously.

The potential resignation of Gensler drew debate in the crypto community about who will lead the SEC and how it will handle crypto regulation in the future. Critics criticize the SEC’s yearlong pursuit of Ripple as a function of broader issues in its crypto enforcement strategy. Assuming Donald Trump still wants to be president, Ripple CEO Brad Garlinghouse said a resolution might fit the bill.

Market observers tell us that XRP’s decoupling from Ripple’s actions validates it as a non-security. Lawyer Bill Morgan said XRP’s price trajectory is unrelated to the company’s work. This supports the case for more defining legal frameworks for digital assets.

Analysts Predict 250% XRP Rally with Key Levels

If the current trends stick, XRP could secure new all-time highs with the help of technical indicators. XRP/ETH charts have seen a multi-year range reclaimed on the charts, according to popular analyst CredibleCrypto, and it predicts a 250% rally. XRP’s movement to $2 could be ignited by the 0.702 Fibonacci retracement level, which traders are keeping a close eye on.

Political leaders and crypto stakeholders have called for regulatory clarity from the SEC’s prolonged litigation. The verdict from the ongoing lawsuit could lay essential precedents for the digital asset space at large. Nevertheless, Ripple executives are optimistic that Ripple and its stakeholders can handle the case favorably.

Just as it did with the price, the trading volume of XRP surged, hinting at solid interest from investors as legal and political activities took place.

The favorability is an important catalyst for continued momentum. This will affect the future of XRP and similar digital assets and any other supposed token that may be in the SEC’s crosshairs for listing.