XRP, Ripple's native cryptocurrency, similar to Bitcoin and Ethereum, has seen investors leave as interest rates rise. Recent Ripple news reveals that XRP faces distinct regulatory and competition challenges.
Regulatory issues arose when the Securities and Exchange Commission filed a lawsuit against Ripple and its executives in late 2020, accusing them of illegally raising $1.3 billion through sales of XRP tokens.
The SEC claimed that these tokens were essentially unregistered securities. However, a US court decision in July found that sales of Ripple's XRP token did not amount to the sale of unregistered securities, leading to the SEC's appeal being overturned three months later. Although the SEC has withdrawn its case against Ripple executives, a decisive legal showdown is scheduled for April.
Let's take a look at an overview of Ripple news over the past two months.
XRP amid ongoing SEC legal showdowns
On April 2, 2024, Bob Mason reported on the evolving landscape for XRP amid the SEC's ongoing legal showdowns with Ripple and Coinbase, casting a shadow over the performance of the XRP market.
The day saw XRP fall by 2.86%, reversing previous gains and closing at $0.6119. The move came on the heels of US economic indicators and Bitcoin exchange-traded fund (ETF) market flow data, reflecting the complex relationship between broader economic factors and cryptocurrency markets.
Although there have been no new developments specifically related to the SEC's case against Ripple, the cryptocurrency community has remained focused on the ramifications of the recent court decision related to Coinbase.
On March 27, Judge Katherine Failla made headlines by partially granting Coinbase's motion to dismiss (MTD), leaving Coinbase vulnerable to charges of operating as an unregistered securities exchange.
Coinbase and its impact on Ripple's performance
The Coinbase case, which will likely impact the outcome of the SEC's battle with Ripple, is under the community's microscope.
Stuart Alderotti, Ripple's chief legal officer, pointed to the ruling's vague definitions of the cryptocurrency “ecosystem,” criticizing the SEC's broad interpretation and its implications for the industry. This legal ambiguity highlights the challenges of navigating the regulatory landscape for cryptocurrency companies.
Amid these legal complexities, the SEC's staggering demand for $1.95 billion in fees and penalties from Ripple adds another layer of complexity.
Such a large financial burden may force Ripple to leverage its large holdings of XRP as collateral, raising concerns about a potential sell-off that could affect XRP market dynamics and investor confidence.
Legal analyst Jeremy Hogan's commentary on the SEC's proposed ruling highlights the potential impact on Ripple and the broader cryptocurrency market.
Furthermore, Ripple's July 2023 ruling, which marked XRP's classification as “unsafe” for secondary sales, faces critical scrutiny.
Two federal judges have questioned the application of the Howey Test to XRP, casting doubt on the stability of the ruling and its implications for XRP's legal status and market valuation.
Despite these challenges, on-chain metrics and whale activities point to a strategic accumulation of XRP, indicating a level of optimism about the future of the cryptocurrency.
Technical analyzes echo this sentiment, indicating bullish price trends and a potential recovery for XRP. However, the volatile nature of the cryptocurrency market, which is affected by regulatory decisions and the performance of Bitcoin, remains a critical factor for XRP and its stakeholders.
Will the price of XRP rise by 200%?
Ripple's native cryptocurrency, XRP, is trading at around $0.59 on Tuesday. This leading altcoin has seen a decline of almost 8% over the past seven days, following a broader correction in the cryptocurrency market following a strong rally in March.
During this rally, Bitcoin reached a new all-time high of $73,737 in mid-March, pushing the entire cryptocurrency market to new heights.
The upcoming Bitcoin halving event, scheduled for April 20, 2024, will send Bitcoin and XRP prices higher this year.
This event will halve the supply of Bitcoin, making it more scarce on the market and potentially pushing its price higher due to increased demand versus decreased supply.
With the cryptocurrency market correction, one of the leading forecasting companies has predicted a significant increase in the price of Ripple's XRP coin.
According to Finder's expert panel, the price of XRP could jump by 200%, reaching a target price of $1.73. This increase would be a remarkable return on investment, turning a $10,000 investment today into $30,000 by 2025 if this prediction holds true.
However, the cryptocurrency market is full of surprises and can be unpredictable due to its volatility. There is no certainty that XRP will reach $1.73 in 2025 with an increase of 200%. Investors should conduct thorough research before investing in Ripple's XRP coin.
Ripple shaping the future of finance
Cryptocurrencies are attracting the attention of growth investors. Bitcoin has reached a new all-time high of $72,000, with further increases expected due to the upcoming halving event in April.
This moment represents an opportunity for investors to explore cryptocurrencies that could reshape finance. These cryptocurrencies have growing institutional support and popularity among retail investors.
Three notable cryptocurrencies poised for growth include Ripple (XRP). Ripple aims to simplify cross-border payments quickly and affordably and is collaborating with banks and financial institutions, positioning itself for easy adoption into existing banking systems.
Currently, Ripple is exploring acquisitions and a potential IPO in 2025, highlighting its promise to facilitate international payments.
It is worth noting that Ripple received a court decision last July confirming that XRP is not a security. Moreover, Ripple has formed major alliances with global banks and obtained a license from the Monetary Authority of Singapore.
As the current mutual payment system becomes outdated, XRP technology can modernize and simplify international transactions for companies and governments, making it a cryptocurrency worth monitoring for investors.
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Let's recap all the news rippling.
The ongoing legal disputes between the SEC, Ripple, and Coinbase highlight the regulatory uncertainties facing the cryptocurrency industry. These battles not only impact the immediate performance of the XRP market, but also shape the broader dialogue around cryptocurrency regulation and its future. As Ripple overcomes these legal hurdles, the cryptocurrency community is watching closely, aware that the findings could have lasting implications for the regulatory and market landscape of cryptocurrencies.
