Ripple plan to re-engage with US market could trigger XRP price recovery
- Ripple’s partial win in the SEC vs Ripple case is followed by the firms plans to re-engage with the US market.
- Monica Long announced that the cross-border remittance firm is ready to engage with countries where there is regulatory clarity.
- XRP price has been in a slump since the decline that followed the SEC vs Ripple ruling.
Ripple’s partial victory versus the US Securities and Exchange Commission’s (SEC) has helped the cross-border remittance firm make the decision to re-engage with the US market. The payment firm is already making strides in its partnerships in regulated places like the UK, Europe, Singapore, Dubai and the Middle East.
Ripple President sheds light on firm’s plans for the US market
Ripple President, Monica Long, told CNBC in an interview that Ripple is ready to make its comeback in the US. This development comes after Judge Analisa Torres’ ruling declaring partial victory for the payment remittance firm against the US SEC.
While there has been speculation of the ruling facing trouble after updates in the SEC v. Terraform Labs lawsuit, Ripple has plans to begin re-engaging with the US market and its key players.
Ripple’s executive acknowledged the firm’s international expansion in places with regulatory clarity, like the UK, Europe, Singapore, Dubai and the Middle East. These jurisdictions have provided clear framework and guidance to the payment remittance firm, making operations and expansion relatively easier for Ripple.
The announcement is likely to act as a bullish catalyst for XRPLedger’s native token XRP price.
XRP price is in a slump, awaiting a catalyst for recovery
XRP price has been in a consistent decline since its July 13 high of $0.9354 on Binance. At the time of writing, XRP is trading at $0.6641. The altcoin is awaiting a bullish catalyst to trigger a recovery, after nearly 30% decline from $0.9354 to $0.6641.
XRP price could recover if the token’s adoption and utility increases, with a wider use case for the XRPLedger blockchain.
SEC vs Ripple lawsuit FAQs
Is XRP a security?
It depends on the transaction, according to a court ruling released on July 14:
For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
How does the ruling affect Ripple in its legal battle against the SEC?
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.
While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
What are the implications of the ruling for the overall crypto industry?
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.
Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.
Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
Is the SEC stance toward crypto assets likely to change after the ruling?
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.
While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
Can the court ruling be overturned?
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
