Ripple Scores Big Win against SEC: 2024 Looks Bullish for XRP

2023-10-18, 07:57

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## [TL; DR]
Ripple’s partial victory against the SEC is likely to push the price of <a href="/ar/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a> above $1.70 in 2024.

Partnership with financial institutions, global expansion and the win against SEC, are key factors that may force the XRP coin price up.

The price of Ripple crypto may reach $27 in 2025.

## Introduction 
Ripple news continues to dominate the cryptocurrency and financial sectors following a federal judge’s decision to block the SEC’s attempt to appeal against the SEC vs Ripple court ruling that the sale of XRP on cryptocurrency exchanges does not constitute an investment contract.

Many analysts think that the recent court decision to stop the SEC’s appeal against the Ripple Lawsuit ruling is another [victory for Ripple Labs](https://www.gate.io/blog_detail/2960/xrp-climbs-on-the-4th-spot-among-cryptocurrencies-following-ripple-s-sec-triumph "victory for Ripple Labs"). Today, we focus on Ripple’s partial win against the SEC and the regulatory body’s attempt to appeal the ruling. We will also look at factors that are [likely to contribute to XRP coin bullish momentum in 2024](https://www.gate.io/blog_detail/3287/ripple-xrp-price-heights "likely to contribute to XRP coin bullish momentum in 2024").

## Overview of Ripple’s Victory over SEC
On 22 December 2020 the United States Securities and Exchange Commission filed a SEC lawsuit against Ripple Labs and its two senior executives, Garlinghouse and Larsen, alleging that they engaged in an unlawful sale of XRP, since they had not registered it with the regulatory body.

The SEC’s position is that by selling Ripple crypto (XRP), with a total value of US $1.38 billion, Ripple Labs violated Section 5 of the Securities Act. Further, it pointed out that since 2013 Ripple has exchanged XRP coins for cash and other considerations to United States citizens and investors from the rest of the world.

Basically, Ripple distributed the XRP coin in three ways, namely programmatic sales, institutional sales and other distributions. Programmatic sales refer to the trading of cryptocurrencies using algorithms or on crypto exchanges. Institutional sales involve selling a digital asset to institute buyers which often entails entering into written agreements.

In the Ripple vs SEC case, other distribution occurred when Ripple Labs made payments to its employees and other third parties using XRP in exchange for certain services. For instance, it used XRP as a payment for individuals and organizations that promoted its cryptocurrency during the initial coin selling stages.

In general terms, a security is an investment instrument that represents a stake in a business enterprise. Due to the absence of a clear definition of investment contract in the United States securities law or crypto regulation, the country uses the Howey Test criteria to determine whether or not an investment asset is a security.

## Ripple Win Against Sec
After a protracted legal battle between Ripple Labs and the SEC, the U.S. District Court for the Southern District of New York passed its judgement on 13 July 2023. According to the court, whether or not XRP is a security depends on the type of distribution used.

Basically, the court ruled that the sale of XRP using a trading algorithm or through cryptocurrency exchanges does not constitute an investment contract. Therefore, XRP coins sold through these means are not legally deemed securities. Also, Ripple Labs’ distribution of  XRP to its employees and other third parties in exchange for certain services did not constitute investment contracts.

Nonetheless, the court declared that any XRP coins that were sold directly to institutional investors constitute investment contracts. The reason is that the institutions made payments using fiat currencies to acquire the XRP.

The use of investment money in exchange for Ripple crypto fulfills one of the Howey Test criteria. According to the court, the institutional sale of XRP creates an expectation of generating profit through Ripple’s effort which may include creating more use cases for the coin.

Recent related news:
[Ripple (XRP) Price Struggles to Surpass $0.50](https://www.gate.io/th/blog_detail/2927 "Ripple (XRP) Price Struggles to Surpass $0.50")

[Ripple (XRP) Poised for a 20% Price Surge: Key Indicators Suggest Breakout](https://www.gate.io/blog_detail/3195/ripple-xrp-poised-for-a-20-price-surge-key-indicators-suggest-breakout "Ripple (XRP) Poised for a 20% Price Surge: Key Indicators Suggest Breakout")
## Ripple’s Key Arguments
During the court sessions that occurred between December 2020 and July 2023 Ripple presented various arguments that influenced the court’s decision on the SEC against Ripple legal battle.

One of Ripple’s key arguments is that its coin, XRP, does not suit the definition of security. The U.S. Securities Act  does not define the term security using any qualitative criteria but lists specific investment instruments that qualify to be securities such as stocks, bonds, options, warrants and a few more others.

Therefore, the category which XRP belongs to is not listed under the definition of investment security or investment contract. However, the fact that people can use XRP as a means of payment can make the coin fall under the category of “money”. Notably, though, money is not included under the definition of the term in question.

Next, Ripple claimed that the SEC has never notified the organization that its coin, XRP, is a security. Therefore, the firm argued that the SEC has shown bias in classifying XRP as a security and its handling of the issue.

Specifically, Ripple mentioned the connection which the SEC has with other crypto projects like <a href="/ar/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>. This is because the SEC gave Ethereum a clear pass that its cryptocurrency, Ether (ETH), is not a security.

It also argued that in several cases XRP was distributed without exchange for cash. For example, it gave millions of the Ripple crypto to grant recipients and charities.

It also maintained that many people around the world can make changes to the XRP blockchain even in cases where Ripple Labs opposes it. This only shows  that Ripple does not manage or control the blockchain as a profit-making business venture. As such, no XRP buyer can expect to profit from XRP as a result of Ripple’s effort.

Read also: [Bitcoin vs. Ripple: What’s the difference?](https://www.gate.io/blog_detail/2101/bitcoin-vs.-ripple-what-s-the-difference "Bitcoin vs. Ripple: What’s the difference?")
## Experts’ Views of the Case
A popular and experienced lawyer Jeremy Hogan said that the United States Securities and Exchange Commission has, so far, failed to prove that XRP is a security. The lawyer also [contends that XRP](https://twitter.com/attorneyjeremy1/status/1644907190455529473 "contends that XRP") does not even fit the definition of an investment contract.

[In a Tweet post Hogan said](https://twitter.com/attorneyjeremy1/status/1644907190455529473 "In a Tweet post Hogan said"), “First, under the legislative definition of a security, XRP can only POSSIBLY fit under the definition of an "investment contract." It is not a stock or bond, etc..”

He added, “But that argument tears the ‘investment’ from the ‘contract’ as a simple purchase, without more, [there] cannot be an ‘investment contract,’ it is just an investment (like buying an ounce of gold) as there is no obligation for Ripple to do anything except transfer the asset.”

In addition, Hogan said that the SEC fell short of convincing the court that XRP is a security since it maintained that “the purchase agreement is all that is required — and that is all it proves.” Thus, Hogan has criticized the SEC for such a legal stance.

Thus, Hogan concluded that in the case of XRP there was no investment contract.

## The Implications of the Ripple Vs Sec Case on Crypto Regulations
The court ruling on the Ripple vs SEC case has generated much momentum against the SEC. This means that in the future other crypto projects will be able to stand against the SEC lawsuits. Also, many firms will fight so that the SEC creates more favourable conditions for the sector than now.

The Ripple win will also act as a precedent for similar cases in the future which is likely to shape a clearer legal framework in the United States than now. The fact that a strong regulatory body like the SEC has lost against Ripple may help regulators in the United States and other countries to create legal guidelines that are explicit resulting in greater regulatory clarity than now.

## What can Cause Ripple Bull Run and Growth in 2024?What can Cause Ripple Bull Run and Growth in 2024?
Several factors are likely to influence a strong Ripple bull run in 2024 and beyond. One of the factors that is likely to trigger an XRP bull run in 2024 is Ripple’s win against SEC. After the win many Ripple investors are likely to buy more XRP coins. This may lead to a sustained XRP coin price rise.

Apart from retail investors, institutional buyers may also acquire more XRP coins. Many other financial institutions can also partner with Ripple to provide cross border monetary transactions which may increase the demand for XRP resulting in bullish for Ripple price.

In 2024 Ripple is likely to expand to other regions of the world  which may push Ripple price upwards. It has already shown its intention by acquiring a payments license in Singapore called Major Payments Institution (MPI) license which entitles it to offer financial services in the country.

## XRP Price Prediction for 2024 and 2025
A Ripple price forecast by several experts shows that its price may rise in 2024 and 2025. For instance, a well-known crypto analyst and Ripple holder, EGRAG CRYPTO, through [a post on X forecasts that the XRP coin price](https://twitter.com/egragcrypto/status/1701479670758203461 "a post on X forecasts that the XRP coin price") is likely to rise by 2500% in 2024.

[EGRAG CRYPTO wrote on X](https://twitter.com/egragcrypto/status/1701479670758203461 "EGRAG CRYPTO wrote on X"), “#{1697615837379588} Only 2500%: If you can't see the incredible potential of #{1697615837379588} in the chart below, especially when breaking through MYTL, then I'm afraid there's little more I can do to convince you.”

Further, EGRAG CRYPTO believes that [XRP will have a God’s candle](https://twitter.com/egragcrypto/status/1711629433650426333 "XRP will have a God’s candle") which is a signal of a strong bullish price movement. The following diagram illustrates the God’s Candle.
![](https://gimg2.gateimg.com/image/article/169761574611391697615206_.pic.jpg)
XRP God’s Candle - Twitter

According to EGRAG CRYPTO, the <a href="/ar/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP price</a> point of $0.2877 will act as the support level. As you see, the God candle should be a signal for any alert Ripple holder to [buy more XRP coins](https://www.gate.io/how-to-buy/xrp-xrp "buy more XRP coins") and hold them.

The analyst, among others, believe that if the right conditions exist the Ripple price may exceed $1.70 in 2024 and reach $27 in 2025.

Related news: [Future Trends From The Historical Market of Ripple (XRP)](https://www.gate.io/blog_detail/2746/future-trends-from-the-historical-market-of-ripple-xrp "Future Trends From The Historical Market of Ripple (XRP)")
## Conclusion 
Ripple made several compelling arguments against the SEC which led to its partial victory in July 2023. It is highly likely that other crypto projects will use the same logic in the future. Also, Ripple’s win against SEC will help to create regulatory clarity in the United States. If Ripple wins the case at the end of the trial the XRP coin price may rise above $1.70 in 2024 and fluctuate around $27 in $2025.

## FAQs About Ripple
### What is the price forecast for XRP in 2024?
The price of XRP is likely to fluctuate between $1.20 and $1.70 in 2024. However, it may achieve this value if Ripple wins against the SEC in the on-going case. The other factors that may push the price of XRP up are partnerships with other financial institutions and Ripple’s global expansion.
### How much will XRP be worth in 2025?
XRP will likely trade around $27 in 2025 if Ripple wins its case against the SEC. Currently, Ripple is working on having more partners in various regions of the world. This may help to increase its value.
Read also: XRP Price Prediction & Forecast for 2023, 2025, 2030
### How much will 1XRP be in 2030? 
The XRP price is likely to fluctuate between $200 and $300 by 2030. However,  XRP can only attain this value if it overcomes its current challenges which include its battle against SEC. Regulatory clarity in the United States will also help Ripple crypto to rally in the next few years.
### Can XRP hit $1,000?
There is no question that XRP will hit $1,000. However, that may take more than 5 years from now to attain that value. Also, it can go that far if there is regulatory clarity in the United States and major global economies.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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