It remains unclear why the SEC has not yet voted on the appeal withdrawal, particularly if both parties have agreed on filing amendments to Judge Analisa’s Final Judgment. Eleanor Terrett, journalist and host of CryptoAmerica, downplayed the SEC’s silence, stating:
“The SEC now has to go to the Southern District and ask Judge Torres to lift the standard injunction. Once that is done, they can vote on everything at once, including the withdrawing of the appeal.”
Will Ripple Drop Its Cross Appeal With an SEC Withdrawal?
However, Ripple is unlikely to drop its cross-appeal if the SEC does not withdraw. The cross-appeal serves as a direct response to the SEC’s legal strategy. A withdrawal could trigger a favorable chain of events, potentially boosting XRP demand, including:
- Penalty reduction for violating US securities laws from $150 million to $50 million.
- Vacating the injunction, ending the prohibition of XRP sales to US institutional investors.
- XRP-spot ETF approvals.
- US bank adoption of Ripple’s ODL and remittance platforms.
On Friday, March 28, news of Indian banks testing XRP-based private ledgers to support efficient bank-to-bank money transfers provided little comfort. The US market would be Ripple’s “Holy Grail.”
For perspective, the US plays a major role in global remittance flows. Analysts forecast the remittance outflow market to increase from $83.39 billion in 2023 to $103.89 billion by 2028. Strategic partnerships aimed at simplifying remittances may place Ripple in a transformative position. However, a formal resolution to the legal battle remains essential to open the US remittance corridor.
XRP Price Outlook Hinges on SEC Activity
On Friday, March 28, XRP tumbled 5.69%, following Thursday’s 0.46% loss, closing at $2.2075. The token underperformed the broader market, which dropped 3.61% to a total crypto market cap of $2.7 trillion.
