XRP Price Plummets 17% As Lawyer Warns Ripple Might Face Another Lawsuit

Ripple’s introduction of the RLUSD stablecoin website has sparked speculation within the XRP community regarding its impact on the ongoing lawsuit with the US Securities and Exchange Commission (SEC).

While some view this as an indication that Ripple’s legal troubles with the SEC might be concluding, prominent figures in the cryptocurrency space urge caution, suggesting that a new lawsuit could be forthcoming.

For one, crypto lawyer Fred Rispoli has warned that the website may lead to another lawsuit against Ripple. “Any issues the SEC has with $RLUSD is for another lawsuit and cannot be bootstrapped to one that is about to end!”

EXPLORE: How to Buy Ripple (XRP) – A Beginner’s Guide

Any issues the SEC has with $RLUSD is for another lawsuit and cannot be bootstrapped to one that is about to end!

— Fred Rispoli (@freddyriz) August 4, 2024

Ripple’s RLUSD Stablecoin Coming

In a recent interview with CNBC, Ripple’s President Monica Long said the RLUSD stablecoin could launch this year. While the exact launch date remains undisclosed, the creation of a dedicated website suggests the company is in the final stages of preparation.

It is worth noting that Ripple might mitigate the risk of another lawsuit if a pro-crypto administration wins in the upcoming elections. Presidential candidate Donald Trump has frequently expressed a pro-crypto stance.

Meanwhile, there is growing speculation inside the XRP community regarding a ruling by the end of August. Just recently, former Ripple director Sean McBride suggested a “50/50” chance of a decision this month.

Ripple CEO Brad Garlinghouse had previously predicted a resolution by the end of summer. McBride noted that if there’s a delay, Judge Torres would likely give her decision by the end of September.

Nevertheless, legal experts have debunked rumors of a possible settlement between Ripple and the SEC. Pro-XRP lawyer Bill Morgan and former SEC attorney Marc Fagel have both downplayed the likelihood of a settlement.

Morgan recently described a potential settlement as “unlikely,” suggesting that any settlement would be a compromise rather than a significant victory. He also pointed out that Ripple might still face significant challenges related to XRP sales beyond December 2020 and future sales of the token.

The SEC has accused Ripple Labs of conducting an unregistered securities offering by selling its cryptocurrency, XRP. The agency has sought a substantial $1 billion (excluding interest) penalty from Ripple for alleged violations.

Conversely, Ripple has indicated it is willing to settle for no more than $10 million.

EXPLORE: What is Ripple (XRP)? A complete beginner’s guide

XRP Slumps Amid Broader Market Crash

Ripple’s XRP has lost more than 17% over the past day amid a broader crypto market crash. The token, currently trading at around $0.44, has hit its lowest level in nearly a month.

The decline coincides with an overall market crash. On Monday, Bitcoin briefly slipped below $50,000 for the first time since February, while Ethereum fell by a staggering 23% daily, now hovering around $2,200.

The recent crypto market crash is largely attributed to a broader downturn in financial markets, fueled by fears of an impending global recession. Investors turned to safe-haven assets as global stock sell-offs deepened, following weaker-than-expected US jobs data at the end of last week.

EXPLORE: 15 Best Anonymous Bitcoin Wallets with no KYC in 2024

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.