Ripple Prepares for SEC Lawsuit Outcome, $XRP Surge Past $0.51

May 23

Ripple (XRP) holders are debating the impact of the Financial Innovation and Technology for the 21st Century Act (FIT21) on the Securities and Exchange Commission (SEC) vs. Ripple lawsuit. The outcome of the lawsuit could affect Ripple's native token XRP's price and affect the payment remittance firm's institutional sales of XRP token. Attorney Bill Morgan, behind the X handle @Belisarius2020, explains that Ripple has prepared for the worst outcome in the lawsuit, a permanent injunction or a complete ban on sales of XRP tokens to its institutional clients in the US.

The US House approved the FIT21 bill, a major crypto legislation cleared by one of the chambers of Congress on Wednesday. As the bill makes passage to the Senate, XRP holders debate its impact on the longstanding legal battle between the US SEC and payment firm Ripple. In its lawsuit against Ripple, the financial regulator has asked for $2 billion in penalties and alleges unregistered securities sale (sale of XRP token) to institutional clients.

In its defense, attorney Bill Morgan explains that Ripple is prepared for the worst case scenario in the lawsuit. In the worst case, the court could order a permanent injunction (a complete ban) on XRP token sales to Ripple's institutional clients in the US. While typically this move could affect the payment firm's business, Attorney Morgan explains that Ripple continue offering its services and selling XRP to institutional clients overseas, under entities in different licensing regimes.

Technical analysis shows that Ripple broke past sticky resistance at $0.51 and is currently trading at $0.5303. The Moving Average Convergence Divergence, Relative Strength Index (RSI), and the Relative Strength Index (RSI) support a bullish narrative for the asset. If Ripple (XRP) successfully establishes itself above $0.5308, the next target is the April 22 and May 6 high of $0.5703.