The Ripple–SEC lawsuit, which initially began as a case of unregistered securities, has expanded so far that the debate over whether XRP qualifies as a security under the Howey Test, particularly for programmatic sales on exchanges, still continues. As a result, the traders and investors of XRP remain immersed in doubt as to whether they should invest in an asset that remains off the regulator’s favorite list.
Recent Developments
A US court had previously ruled in 2023 that XRP sales on public exchanges do not violate the US securities laws, marking a partial win for Ripple, though institutional sales were still viewed as violations of the securities law. The SEC filed an appeal challenging several aspects of this ruling in October 2024, with its opening brief filed on January 15, 2026, challenging Judge Torres’s findings on secondary market sales.
A ruling in favor of the SEC will cement its role as a regulator. It will also be a blow to the crypto sector because similar lawsuits will crop up against other cryptocurrencies. On the other hand, a ruling in favor of XRP will be a boost to the crypto sector as a whole, enabling seamless crypto trade and providing tax and regulatory benefits to the users.
XRP’s price has been fluctuating these days, with the current price of $1.90 being 2.13% lower than the price 24 hours ago. The key support and resistance levels remain at $1.89 and $1.96-$2.03. Investors are watching the performance of XRP in relation to the support and resistance levels to identify the bullish or bearish signals. The institutional interest has also been on the rise, as evidenced by the large whale transactions.
Moreover, XRP has been benefiting from a favorable global regulatory landscape, with countries like the UAE, Singapore, and Japan easing their rules to accommodate cryptocurrencies.
Implications for the US Crypto Holders
As long as the outcome of the lawsuit remains uncertain, XRP will continue to face delisting risks on major US-based cryptocurrency exchanges. Institutional investors will continue to be doubtful about XRP’s prospects, which will deter them from investing in the currency. If the final ruling of the lawsuit favors the SEC, meaning XRP is reclassified as a security, current XRP holders will face difficulties related to taxation and compliance. On the other hand, if the final ruling comes in favor of Ripple, then it will boost XRP’s position in the market, improving its liquidity and stabilizing its price.
The final judgment of the lawsuit remains uncertain. Ripple’s leadership and US crypto holders are optimistic that the outcome of the Ripple–SEC lawsuit will be in Ripple’s favor, allowing XRP to maintain its status as a powerful cryptocurrency in the global market.
