The Ripple and XRP community continue to express their disapproval of the strict enforcement regulations imposed by the US Securities and Exchange Commission (SEC), particularly when it comes to matters beyond its jurisdiction.
The upcoming US general elections are expected to be a significant turning point for the widespread adoption of cryptocurrencies in the country, providing a sense of relief for XRP holders.
After a nine-day period of bearish trends, the price of XRP, which is backed by Ripple Labs, experienced a rebound on Thursday and Friday. With a fully diluted valuation of approximately $47.7 billion and an average daily trading volume of around $732 million, this large-cap altcoin has been approaching the peak of its multi-year triangular consolidation.
Given the positive outlook for cryptocurrencies, it is reasonable to assume that the price of XRP is on the cusp of a major bullish surge, which will be triggered by the settlement between Ripple and the US SEC. As previously reported by Crypto News Flash, the settlement plan between Ripple and the US SEC has gained momentum as the current administration nears its end.
It is worth noting that the US SEC has filed a motion to the presiding judge, seeking to impose a fine of approximately $102 million on Ripple for violating securities laws. Despite a ruling last year that suggested otherwise, the US SEC continues to argue that the sale of XRP on cryptocurrency exchanges violates securities laws.
Ripple is pushing back against the US SEC’s aggressive actions, accusing Chair Gary Gensler of exceeding his authority by attempting to regulate the crypto industry through enforcement measures. According to Stuart Alderoty, Ripple’s Chief Legal Officer, Gensler has failed to provide clear regulations for the American people.
Furthermore, a court has found that the US SEC unlawfully exceeded its mandate to regulate the crypto industry and other sectors. In a lawsuit between the SEC and the National Association of Manufacturers, the court ruled that, under Gensler’s leadership, the agency unlawfully rescinded a rule on proxy advisory firms without adhering to the Administrative Procedure Act.
Earlier this month, a California judge dismissed all allegations that Ripple violated federal securities laws. However, the ruling in New York that XRP is not a security still stands, with the main point of contention being institutional sales and the significant escrow holdings.
The recent decision by the US SEC to drop investigations into Ethereum has raised the likelihood of a similar outcome for XRP. However, the substantial escrow holdings by Ripple could negatively impact the final ruling.
The global XRP community is eagerly anticipating the filing of a spot Exchange-Traded Fund (ETF) following the approval of spot Ether ETFs and the recent application of a Solana ETF. The Ripple core development team has been working diligently to build the necessary infrastructure to facilitate the widespread adoption of XRP and its cross-border payment products. Additionally, Ripple plans to launch its US dollar-backed stablecoin later this year.
In terms of price, XRP has been attempting to establish a local bottom around 47 cents on the weekly time frame amid the ongoing crypto correction. Over the past two days, the altcoin has seen a 3 percent increase, trading around $0.476 during the New York session on Friday.
From a technical perspective, to avoid a drop below 40 cents, it is crucial for the price of XRP to consistently close above 50 cents in the coming weeks.
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