For the past four months, XRP (XRP 1.20%) has easily been one of the top performers in the crypto market. Over that time period, XRP is up a staggering 400% and was recently trading around $2.50.
But the best may be yet to come. XRP holders may soon get some fantastic news about an important Securities and Exchange Commission (SEC) lawsuit that has dragged on for more than four years now. If the case is finally dismissed, XRP could soar in value.
The SEC versus Ripple
If you haven't been following the long, drawn-out legal proceedings involving XRP, Ripple (the company behind the XRP token), and the SEC, consider yourself lucky. The case, which started in December 2020, has taken so many twists and turns that it has been almost impossible to keep up. Just when the case seems to be over, it somehow extends even longer.
Image source: Getty Images.
At its core, the lawsuit comes down to a single question: Is XRP a security or a commodity? And, believe it or not, to answer that question, the courts are using a legal precedent (known as the Howey Test) from a 1946 Supreme Court case involving a company selling Florida orange groves. That might help to explain why the case has dragged on so long: If you think comparing apples to oranges is difficult, what about comparing cryptos to oranges?
The good news is that it looks like a final decision is coming between now and April 16, which is the next anticipated court date for the case. After more than four years of countless legal back-and-forth, we might have a final resolution. And there's nothing the market likes better than certainty.
Factors in XRP's favor
Thus far in 2025, the SEC has already dismissed several high-profile crypto lawsuits. But after filing an appeal in January, it has been strangely silent about the one involving Ripple.
Given the clear pro-crypto emphasis of the Trump administration, the thinking now is that, whatever happens next, it will be in XRP's favor. As hard as the SEC has been pressing its case, it simply doesn't hold the right cards any more.
Even if the SEC finds a way to extend this case beyond April, the Trump administration has several important levers it can pull to end this once and for all. Some have speculated that Trump could send Elon Musk and DOGE to look into activity at the SEC. Or he might encourage the recently formed Senate Crypto Subcommittee to investigate the SEC for regulatory overreach. And if that doesn't work, he might simply sign an executive order.
How high could XRP go?
The sky's the limit for how much higher XRP might go. In a best-case scenario that involves only the final resolution of the SEC court case, it's possible that XRP could reclaim its all-time high of $3.84.
CRYPTO: XRP
Key Data Points
But let's think bigger. XRP could be included as part of the new Crypto Strategic Reserve proposed by the Trump administration, so it's easy to find price forecasts as high as $10 for XRP. In fact, some analysts think that XRP might eventually soar as high as $100 as long as the entire crypto market moves higher.
Moreover, there's another factor that could send XRP higher: the launch of a new spot exchange-traded fund (ETF). The likelihood of XRP getting a spot ETF this year will be enhanced considerably if the regulatory cloud over Ripple and XRP lifts. The launch of a new spot ETF is key, because it ensures a fresh new influx of investor money into XRP.
Right now, Bloomberg projects the likelihood of a spot XRP ETF at 65%. That was based on the understanding that there's no way the SEC would approve an ETF if there are still regulatory issues swirling around XRP. So if the SEC case gets resolved by April, it becomes highly likely that a spot ETF might arrive later this year.
The end of regulatory risk?
What you need to know as an investor is that a very big catalyst is coming within the next 45 days, and it makes XRP very attractive as an investment target right now. So keep your powder dry. The lifting of the regulatory clouds over the crypto industry is creating plenty of new investment opportunities with significant upside potential.
