3 XRP Price Implications to Consider

The lawsuit between Ripple Labs and the United States Securities and Exchange Commission has become a landmark case in the cryptocurrency industry, which is likely to have a lasting impact on its future development.

For those unaware, the Commission alleged (in late 2020) that Ripple had conducted an unregistered sale of securities when it sold XRP to institutional investors. He further argued that programmatic sales of XRP on centralized exchanges to retail investors – massive allegations that caused a ripple effect (pun intended) throughout the industry.

The price of XRP skyrocketed as almost all major cryptocurrency exchanges delisted it for fear of being sued.

The case has been ongoing for four years, but last week US Judge Analisa Torres ruled in a way that dispelled many of the concerns. The court held that programmatic sales of XRP to retail customers through centralized exchanges (the most important claim) did not violate securities laws. It also ruled that Ripple violated securities regulations through its direct sale of XRP to institutional customers.

This resulted in a fine of $125 million, a far cry from what the SEC had demanded (nearly $2 billion). The market soared once the news broke and XRP exploded by around 20%. Since then, the price has stagnated. However, the implications of this ruling are likely to have a lasting impact on cryptocurrency. Here are three potential ways it could shape your future performance.

Relieve regulatory pressure

The US SEC was seeking nearly $2 billion from Ripple, an amount that could have caused irreparable damage to the company if awarded.

Not only that, but if the court had declared that XRP sold to retail customers was a security, it would undoubtedly cast a massive shadow over the cryptocurrency and push it into a very different regulatory regime than it is today.

This was clear in the reaction of several major crypto exchanges, which removed XRP from their platforms almost immediately after the SEC filed its charges in 2020.

Now that the court has spoken, investors can be more confident that they are not dealing with a security instrument.

XRP returns to exchanges

The same goes for cryptocurrency exchanges, the main medium for trading XRP. These platforms are no longer under threat of offering securities for trading to their retail clients without the necessary compliance mechanisms in place.

But aside from crypto exchanges, some popular trading sites like Robinhood are already rumored to be considering listing XRP.

: Grab your digital wallets, folks! Rumor has it that #XRP could be making its grand entrance onto the Robinhood scene in early 2025, thanks to its upcoming acquisition of Bitstamp. If true, this could be the blockbuster event that introduces XRP to millions of new investors… pic.twitter.com/hIMfp1QZBX

— Brett Hill (@Brett_Crypto_X) August 10, 2024

Legacy institutions get involved

It might be a bit long, but anyway the article focuses on the long-term implications of the price of XRP. Now that the court has clarified its position on the matter, legacy institutions like BlackRock could consider (at some point) creating and offering an XRP ETF for Commission approval.

After all, XRP remains one of the largest cryptocurrencies, despite the legal hurdles of the past four years, and generates substantial trading volume.

Such a product could make sense for its issuers because XRP has one of the largest communities and a substantial base of retail investors.

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