Could Political Endorsements Decide XRP’s Fate?

Ripple vs. SEC is heating up, and you know what? XRP isn’t backing down. Court drama just adds fuel to the crypto fire and proves the network’s worth fighting for.

In a recent post, crypto attorney Bill Morgan highlighted his skepticism regarding the SEC’s approach to regulating XRP, joking that the agency might stretch its interpretation of the Howey test to cover political endorsements. The comment follows a discussion where another user, @XRPcryptowolf, pointed out that Ripple co-founder Chris Larsen’s recent public support for a political candidate could be influencing XRP’s market performance.

Morgan’s remark suggests that the SEC’s interpretation of “the efforts of others,” part of the Howey test used to determine if an asset qualifies as a security, may be reaching overly broad definitions. By hypothetically including political support or donations as factors that could influence an investor’s profit expectations, Morgan hints at the SEC’s potential to stretch its regulatory authority to new levels. 

His comment reflects ongoing concerns in the crypto community about how far the SEC may go in shaping the regulatory landscape for assets like XRP.

Key Dates on Ripple’s Calendar

Ripple faces important deadlines that will shape its future. By November 4, the company must decide whether to submit an amended order or forgo compliance entirely, which could add new tension to the case. Looking further ahead, a pretrial conference is scheduled for December 19, with jury selection and a trial set for January 21, 2025. Meanwhile, the SEC has intensified its efforts to reinstate charges against Ripple’s top executives, with final briefings due on January 15. Ripple’s response to these demands will influence XRP’s market and determine how it goes in the current regulatory scenario.

XRP Market Sentiment 

XRP saw a slight drop of 1.02% on October 30, closing at $0.5224 and ending its four-day winning streak, as it lagged behind the broader crypto market, which slipped 0.50% to a $2.381 trillion market cap. Market sentiment surrounding the upcoming U.S. Presidential Election is adding to XRP’s volatility, with a potential Trump victory anticipated to push XRP above the key $0.55 resistance. Conversely, increased support for Kamala Harris in the final election stretch could pull XRP below the $0.50 mark.

What’s at Stake for Ripple and XRP?

Moreover, Ripple’s next steps are important, with each choice in this legal battle potentially impacting XRP’s future. An alternative resolution could spare XRP from prolonged legal stress and stabilize market sentiment, while a defiant approach may bring additional volatility and uncertainty.