XRP, Ripple's native digital currency, similar to bitcoin and ethereum, saw investors flee as interest rates rose. Recent news reveals that XRP faces different regulatory challenges and competition.
Regulatory issues arose when the SEC filed a lawsuit against Ripple and its two executives in late 2020, accusing them of illegally raising $1.3 billion through the sale of XRP tokens.
The SEC claimed that these tokens were essentially unregistered securities. However, a US court decision in July determined that Ripple's XRP token sales did not amount to the sale of unregistered securities, overturning an SEC appeal three months later. Although the SEC dropped its case against Ripple executives, a conclusive legal showdown is scheduled for April.
Let's take a look at the summary of the news of the last few months.
XRP Amid Continued SEC Legal Showdowns
On April 2, 2024, Bob Mason reported on the evolving XRP landscape amid the SEC's ongoing legal showdowns with Ripple and Coinbase, which cast a shadow over XRP market performance.
On that day, XRP fell 2.86%, undoing an earlier gain and closing at $0.6119. This move came on the back of US economic indicators and btc spot ETF market flow data, reflecting the intricate relationship between broader economic factors and cryptocurrency markets.
Despite the absence of new developments specifically related to the SEC v. Ripple, the crypto community remained focused on the fallout from a recent court decision involving Coinbase.
On March 27, Judge Katherine Failla made headlines by partially granting Coinbase's motion to dismiss (MTD), leaving Coinbase vulnerable to charges of operating as an unregistered exchange.
Coinbase and its influence on Riple performance
The Coinbase case, which could potentially influence the outcome of the SEC's battle with Ripple, is under the community's microscope.
Ripple Chief Legal Officer Stuart Alderoty pointed out the ruling's ambiguous definitions of a crypto “ecosystem,” criticizing the SEC's broad interpretation and its implications for the industry. This legal ambiguity underscores the challenges of navigating the regulatory landscape for crypto companies.
Amid these legal complexities, the SEC's staggering demand for $1.95 billion in fees and penalties against Ripple adds another layer of complexity.
Such a significant financial burden could force Ripple to tap into its significant XRP holdings in escrow, raising concerns about a potential liquidation that could impact XRP market dynamics and investor confidence.
Legal analyst Jeremy Hogan's commentary on the SEC's proposed ruling accentuates the potential impact on Ripple and the broader crypto market.
Furthermore, the Ripple ruling of July 2023, which differentiated the classification of XRP as “non-security” in secondary sales, is facing critical scrutiny.
Two federal judges questioned the application of the Howey test to XRP, casting doubt on the stability of the ruling and its implications for XRP's legal status and market valuation.
Despite these challenges, on-chain metrics and whale activities suggest strategic accumulation of XRP, indicating a level of optimism about the future of the cryptocurrency.
Technical analyzes reflect this sentiment, hinting at bullish price trends and a possible XRP recovery. However, the volatile nature of the crypto market, influenced by regulatory decisions and bitcoin performance, remains a crucial factor for XRP and its stakeholders.
Will XRP Price Increase by 200%?
Ripple's native cryptocurrency, XRP, is trading around $0.59 on Tuesday. This leading altcoin has seen a drop of almost 8% over the past seven days, following a broader cryptocurrency market correction following a strong rally in March.
During this rally, bitcoin hit a new all-time high of $73,737 in mid-March, taking the entire cryptocurrency market to new heights.
The upcoming bitcoin halving event, scheduled for April 20, 2024, is driving the price surge of btc and XRP this year.
This event will reduce the supply of bitcoin by half, making it rarer on the market and likely raising its price due to increased demand in the face of reduced supply.
As the cryptocurrency market corrects, a leading prediction firm has predicted a significant rise in the price of Ripple's XRP.
According to the Finder expert panel, the price of XRP could rise by 200%, reaching a price target of $1.73. This increase would represent a notable return on investment, turning an investment of $10,000 today into $30,000 in 2025, if the prediction comes true.
However, the cryptocurrency market is full of surprises and can be unpredictable due to its volatility. There is no certainty that XRP will reach $1.73 in 2025 with a 200% increase. Investors should conduct extensive research before investing in Ripple's XRP.
Ripple shaping the future of finance
Cryptocurrencies are capturing the attention of growth investors. bitcoin has reached a new all-time high of $72,000, with expectations of further increases due to the upcoming halving event in April.
This moment presents an opportunity for investors to explore cryptocurrencies that could reshape finance. These cryptocurrencies enjoy growing institutional support and popularity among retail investors.
Three notable cryptocurrencies poised for growth include Ripple (XRP). Ripple aims to streamline fast and affordable cross-border payments and collaborates with banks and financial institutions, positioning itself for easier adoption into existing banking systems.
Ripple is currently exploring acquisitions and a possible IPO in 2025, highlighting its promise to facilitate international payments.
Significantly, Ripple received a court decision last July, confirming that XRP is not a security. Additionally, Ripple has formed important partnerships with global banks and obtained a license from the Monetary Authority of Singapore.
Since the current cross-payment system is outdated, XRP technology could modernize and simplify international transactions for businesses and governments, making it a cryptocurrency worth monitoring for investors.
Bottom line
Let's summarize all the Ripple news.
The ongoing legal disputes between the SEC, Ripple, and Coinbase highlight the regulatory uncertainties facing the cryptocurrency industry. These battles not only affect the immediate performance of the XRP market, but also shape the broader dialogue around cryptocurrency regulation and its future. As Ripple navigates these legal hurdles, the crypto community is watching closely, aware that the results could have lasting effects on the cryptocurrency market and regulatory landscape.
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