Ripple Could Face Fresh SEC Lawsuit Amid Ongoing Legal Challenges

Ripple’s launch of the RLUSD stablecoin website has led to speculation about the potential end of its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). Some in the XRP community view this as a sign of imminent resolution, though experts advise caution, suggesting a new lawsuit could arise.

Possible New SEC Lawsuit

Crypto influencer Fred Rispoli commented on the RLUSD launch, emphasising that any issues related to RLUSD are unlikely to impact the current lawsuit but may prompt a new legal challenge. Ripple's President Monica Long had previously suggested a 2024 launch for RLUSD, with the website’s creation indicating final preparations.

Impact of Political Change

Ripple might avoid new legal risks if a pro-crypto administration takes office after the November elections. Presidential candidate Donald Trump has expressed support for crypto, and former SEC attorney Marc Fagel speculates that a change in administration could alter the SEC’s approach to the industry.

Ruling Timeline and Settlement Speculations

Former Ripple director Sean McBride raised expectations by suggesting a “50/50” chance of a ruling by Judge Torres in August. McBride added that if delayed, a decision could be expected by September’s end. Despite speculation, legal experts such as Bill Morgan and Marc Fagel believe a settlement is unlikely. Morgan views any potential settlement as a compromise rather than a significant victory and notes ongoing challenges related to XRP sales.

XRP Token Unlocking and Market Reactions

Ripple’s recent Q2 2024 market report expressed confidence in a fair ruling and the belief that XRP will not be classified as a security. The SEC has sought a $1 billion penalty, while Ripple is prepared to settle for up to $10 million. The significant disparity suggests a settlement may be difficult.

In the latest development, the unlocking of 1 billion XRP, worth approximately $579.43 million, led to an 14% drop in XRP’s price, breaching the $0.6 support level. This has intensified speculation that Ripple might be preparing to settle the lawsuit.