Charles Gasparino, a Fox Business reporter, has issued a warning to XRP holders. He suggests that Ripple’s ongoing legal challenges could affect their wealth. As per Gasparino’s post on the X social network, XRP investors stand to suffer financial losses. He derives this from the uncertain victory of Ripple in the legal war against the SEC.

The relationship between Ripple and its token, XRP, has been up for review for a number of years. The legal conflict of the company against the United States Securities and Exchange Commission (SEC) is at the heart of this matter. The fact that Ripple has failed to resolve its legal issues with the SEC is the foundation of Gasparino’s pessimistic view. There are still uncertainties regarding the legal problems that have influenced XRP’s market performance.

Ripple’s Mixed Legal Outcomes

The legal fight made a huge turn after a decision by U.S. District Judge Analisa Torres. She discovered that Ripple’s institutional sales violated the law. However, she also held that secondary XRP sales did not qualify as investment contracts. Ripple’s partial victory saw XRP’s price spike in July for just a moment.

Although the ruling was in their favor, the price of XRP has yet to hold onto the gains. It briefly went beyond $0.8 but now is trading at $0.62. This drop came even though the entire market went up, with Bitcoin at the lead. Investor caution about the situation has caused XRP to have difficulty getting back to its post-ruling high.

XRP Under Pressure Amid SEC’s Legal Pursuit

It is suggested that the SEC will file an appeal to Judge Torres’s ruling. This action is among its wider policies regarding cryptocurrency regulation. The SEC’s offensive approach doesn’t stop at Ripple but also affects Ethereum. Gasparino thinks that XRP will remain under the control of the SEC.

Apart from the appeal, Ripple may be liable for a penalty in excess of $2 billion. This derives from the SEC’s most recent move. The pressure of such a financial nature could greatly affect Ripple’s activity and the market value of XRP. With the legal saga in progress, investors keep an eye on how it will develop for future Bitcoin.

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The post Ripple Legal Woes Could Drain XRP Holders, Expert Claims appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am