Despite the legal hurdles, many crypto investors are showing an inclination toward $XRP Cryptocurrency, but on the other hand, some people are against the $XRP coin investment choice. This guide will help you to understand whether you should consider $XRP coin in any crypto investment portfolio or not or what the degree of risk is.
Introduction: Ripple & $XRP
Ripple is a San Francisco headquartered blockchain firm which is known for its payment services. $XRP Cryptocurrency is backed by Ripple’s blockchain team to ensure continuous development in the XRP Ledger (XRPL) ecosystem, to make $XRP coin an active Cryptocurrency in the crypto space. Here, people need to know that Ripple & $XRP are independent, and Ripple does not control the XRPL network.
Current Price Action
The current trade price of $XRP coin is $2.09 & this price level is 240% higher over the last 90 days of the period.
The current trade price of $XRP coin is $2.098 pic.twitter.com/7A2GU0WbFd
— Bitcoinik (@Bitcoinikdotcom) December 30, 2024
The notable pump in the trade price of $XRP coin started in November 2024 (from $0.55 to $2.7) following the bull sentiments in the crypto space.In this phase, the majority of the crypto analysts are distancing themselves from sharing any kind of strong analysis regarding this Cryptocurrency. So, the majority of retail crypto investors are failing to establish a strong mentality regarding their investment decision for this Cryptocurrency.
We can see that recently a crypto analyst Alit_Chart shared his analysis but failed to predict any big price action for this Cryptocurrency, which clearly shows the tension among experts also.
If $XRP can hold above $2.20, it might consolidate for a while before taking another shot at the $2.70 resistance. But if the $2.20 support breaks, a downswing to $1.96 becomes imminent. pic.twitter.com/cdtdtSwzKy
— Ali (@ali_charts) December 21, 2024
However retail traders are lagging in taking any big decision for investment in this Cryptocurrency, but whales are continuously buying in big amounts.
Whales bought another 40 million $XRP in the last 24 hours! pic.twitter.com/t0s0xkB2PZ
— Ali (@ali_charts) December 24, 2024
Whales bought another 60 million $XRP in the last 48 hours! pic.twitter.com/FTbTWDtBVM
— Ali (@ali_charts) December 25, 2024
Legal Hurdles vs Legal Clarity
The United States Securities and Exchange Commission (SEC) sued Ripple & its executives for the sale of $1.3 billion worth of $XRP coin and also labelled $XRP as an unregistered security token, in Dec 2020.
That lawsuit is still active but developments in the case proved that Ripple & $XRP are independent and also $XRP is not a security token, which means the SEC body has no authority to interfere in the financial activities as well as the legal nature of $XRP Cryptocurrency.
Just a few months ago the SEC body filed to consider a new hearing in this active legal battle, as the SEC body still believes $XRP is an unregistered security token.
https://t.co/Eac4kRlcrS#XRP lawsuit heats up again, the #SEC body files appeal against court ruling
— Bitcoinik (@Bitcoinikdotcom) October 4, 2024
As $XRP & Ripple are legally independent, so here we as a crypto investor shouldn’t consider any legal hurdles associated with Ripple firm but the future’s new hearings regarding $XRP coin may bring new hurdles for Ripple’s XRP-linked financial activities as well as for crypto investors, if the court ruling call $XRP unregistered security token on behalf of SEC’s demand.
However, a huge amount of time has already been spent by the court judges in this matter, where almost everyone is satisfied with the court ruling, except the SEC officials, but we can’t ignore the future hearings as an important fact for the volatility in the price of $XRP coin.
Changing Crypto Regulatory Environment in the US Jurisdiction
As we know, the current situation for the sector sector is now favourable enough in the jurisdiction of the United States of America (USA), thanks to the political rivalries.
Bitcoin critic President-elect Donald Trump turned Bitcoin advocate in late 2023 & showed full support for Bitcoin & crypto space during his presidential election campaigns between 2023 and 2024.Along with Trump, other presidential candidates talked about the crypto space and promised to bring a better regulatory situation so that crypto companies run crypto-related business activities smoothly under crystal clear rules & laws.
Most importantly, Trump promised he would remove crypto-hater SEC chairman Gary Gensler from the SEC agency and allow only those rules that will help crypto adoption & ensure investor protection.
Just a few weeks ago, the current SEC chairman, Gensler, announced that he would resign from his role before 20 January 2025, just before Trump assumed the US presidential office.
Trump already nominated Paul Atkins for the SEC chairman role. Atkins is known for his crypto-friendly stance & also has expertise in creating better economic policies during his past tenure at the SEC body.
https://t.co/LLqX9Q66O4After Gary Gensler’s departure, #SEC may follow a #Bitcoin & Crypto-friendly approach, SEC officials Say: Blockchain summit
— Bitcoinik (@Bitcoinikdotcom) December 27, 2024
Legal experts believe that the SEC body will take back multiple numbers of crypto-related lawsuits, which were initiated under the leadership of Gensler. However, no one knows exactly what will happen, but if it happens, then surely $XRP Cryptocurrency will get out of all the legal hurdles.
In the current scenario, we can say that $XRP will always remain in a better position, as per the current scenario, although the $XRP lawsuit is still active.
So here we can suggest people consider $XRP as an investment asset in their crypto portfolio but we also suggest doing self-research to ensure risk & benefit odds.
XRP lawsuit links with BinanceUS & other top American crypto exchanges
Currently, many top crypto exchanges are under legal hurdles because of the SEC’s suits. These exchanges include Binance, Kraken, Robinhood, etc.All these crypto exchanges are facing similar charges of providing unregistered securities offerings in the US jurisdiction.Notably, Binance Exchange settled the case with all the US authorities but denied any settlement with the SEC body. This is probably a hint that the majority of the crypto exchanges, including Ripple firm, are in contact to fight against the SEC’s charges.
Problem with the SEC body
Many SEC commissioners called the SEC’s lawsuits against crypto companies a bad approach to crypto regulation. Instead, the SEC body should provide crystal clear rules & laws so that companies can follow the rules perfectly.
In 2024 some crypto companies disclosed many details regarding their conversation with the SEC body and confirmed that the SEC body never made any kind of rules or law to allow the crypto companies to get registered for providing securities offering.Some companies provided evidence that the SEC body never provided authority to any company to provide, even limited, crypto-related services but every time interfered in crypto-related business activities, which was outside the authority of the SEC body.
Read also: Saylor Asks Elon Musk Why Tesla Hasn’t Restarted Accepting Bitcoin Payments Despite His Promise
