Ripple (XRP) Cryptocurrency Gains 6% Despite Ongoing Legal Issues – Eyes On Conclusion Of the SEC Lawsuit

B. Ali
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Ripple (XRP) cryptocurrency has been gaining traction and surged roughly 6% over the last 4 hours, despite its ongoing legal issues. Ripple, the San Francisco-based blockchain company behind XRP, has been facing a lawsuit from the US Securities and Exchange Commission (SEC) alleging that the cryptocurrency is an unregistered security and that Ripple and its executives have engaged in illegal securities offerings worth over $1.3 billion.

Despite the ongoing SEC lawsuit and recent news from Silvergate, Ripple (XRP) investors remain bullish on their investment since Ripple’s CEO has openly expressed his commitment to defend the litigation.

Bradley Kent Garlinghouse the CEO of financial technology company Ripple Labs has also criticized the SEC for the lack of clarity surrounding cryptocurrency legislation, which he believes is hindering innovation and sectors growth.

Garlinghouse has stated that Ripple has always operated in clear terms and has coordinated with regulators to comply with laws and regulations. He claims that XRP is a currency, not a security and that Ripple has no influence over its pricing or supply.

He also emphasized the success of Ripple’s products and services, including the On-Demand Liquidity (ODL) solution, which employs XRP to ease cross-border payments.

XRP Pricing Remains Stable Despite Continued Legal Concerns

Despite the legal difficulties and regulatory uncertainties, Ripple (XRP) has increased by 21% in the last week, which indicates that XRP holders and investors remain optimistic about the cryptocurrency’s potential even though continuous legal obstacles.

The Ripple lawsuit is undoubtedly a significant hurdle for the company and the cryptocurrency sector. If the SEC succeeds, it may have an impact on other blockchain initiatives and cryptocurrencies that are regarded as securities offerings.

Ripple Lawsuit Highlights the Need for Regulatory Clarity in Cryptocurrencies

However, the case highlights the need for more regulatory clarity around cryptocurrencies. As the industry grows, there could be more lawsuits and regulatory action, and Ripple’s case could have a significant impact on the industry’s future.

Thereby, the lawsuit filed by the SEC against Ripple has had a significant impact on the price of XRP, Ripple’s cryptocurrency. However, the disclosure of the lawsuit in December 2020 led the price of XRP to collapse by more than 60%, as investors were afraid that the legal battle would undermine Ripple’s company and XRP’s image.

Since then, the price of XRP has fluctuated based on news and events surrounding the case. The price of XRP increased in February 2021 when a judge ordered the SEC to turn over internal papers about its cryptocurrency decision-making process. This encouraged investors to believe that Ripple could effectively defend itself against the claims.

Although, the price of XRP plummeted again in March 2021, on news that major cryptocurrency exchanges had chosen to delist XRP due to fears about the lawsuit. This meant that investors had fewer alternatives for buying and selling XRP, which influenced its price.

XRP Price Fluctuations and Ripple Lawsuit: Impact on Investors and Cryptocurrency Sector

Hence, the price fluctuations of XRP suggest that investors are actively monitoring the lawsuit’s progress, and any news linked to it might have a substantial influence on the cryptocurrency’s worth. It remains to be seen how the case will be settled and how it will affect Ripple and the cryptocurrency sector as a whole in the long term.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.