Ripple just scored another blow against the SEC in their legal battle and it might be critical for the eventual judicial decision and more importantly, for the future of the project and XRP.

The latest win for Ripple comes in the form of a judicial decision to dismiss a motion filed by the SEC, requiring the crypto company to disclose memos of its XRP sales. Ripple Labs argued that the motion would infringe on the company’s attorney-client privileges. It was this argument that formed the basis of Judge Sarah Netburn’s ruling.

The ruling was critical because it strengthens Ripple’s argument that the SEC should have provided fair notice before filing the lawsuit. It also means that the SEC has been stopped in its tracks in an attempt to access confidential documents from Ripple’s lawyers. The ruling is leaning more in favor of Ripple, and there have been talks of a settlement.

Unfortunately, the current legal battle has weighed heavily against XRP’s performance. For example, the cryptocurrency experienced a sharp decline after the SEC’s previous win allowing it to seek assistance from foreign jurisdictions when gathering transaction information on Ripple. Judicial rulings continue to have a major impact on the price of the cryptocurrency and that will likely be the case for the latest ruling.

XRP is currently trading at $1.04 and is in the recovery process after the latest bearish run in the overall cryptocurrency market. The bearish correction combined with the previous judicial ruling caused Ripple’s price to crash to a low of $0.65 in May, which was a price level previously experienced on April 5^th. Fortunately, the price is back above the $1 price level, but it has been experiencing low trading volumes, presumably because investors have taken a cautious stand. A wise choice to let the uncertainty cool down before investing.

The latest win for Ripple Labs will likely encourage some buying, in which case the price might experience resistance around the 1.15 and 1.30 price levels based on the Fibonacci retracement. Its price action has already crossed above the 7-day and 55-day moving averages but it is still below the 25-day moving average.

Interestingly, the latest ruling comes at around the same time that the cryptocurrency market is recovering from the sharp price correction in May, which means it might gain some more momentum in the short term, assuming that the market maintains its current recovery trajectory. The long-term outlook will depend on the judicial outcome in the ongoing legal battle.

A win for Ripple would not only provide a significant boost for XRP but also form a favorable basis for the cryptocurrency market in similar other cases in the future. Ripple previously revealed that it will heavily consider going public. An interesting choice considering that the current legal battle involves the argument of whether XRP is a security or a currency.

Launching an IPO will likely appease the regulatory watchdogs while giving the company more leeway to pursue business partnerships in the public domain. For example, it will be easier for Ripple to provide its Ripplenet services to banks and other financial institutions if it operates as a publicly listed company. However, this can only happen once the lawsuit comes to an end.

Going public seems to have significant potential benefits for Ripple. On the other hand, regulatory issues that have plagued the company since the lawsuit was launched, may force it to close its offices in the U.S and seek registration in a foreign country from where it can operate with fair regulation. This is a potential direction that has been hinted at in the past, but whatever the case is, Ripple will go with the option that best suits its plans for the future.