As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless twists and turns in the regulatory landscape, particularly when it comes to emerging assets like cryptocurrencies. The latest development between the US Securities and Exchange Commission (SEC) and Ripple is no exception to this trend.
TL;DR:
- The US Securities and Exchange Commission filed an appeal against a 2023 court decision that benefited Ripple’s side.
XRP’s price tumbled hard in the following hours, despite some optimism about a potential ETF in the States tracking its performance.
SEC’s Appeal
Previously reported news details an event from this past week where the U.S. Securities and Exchange Commission (SEC) challenged a 2023 ruling by Judge Torres. This decision stated that transactions involving secondary sales of XRP should not be classified as securities sales.
Initially, Ripple’s leadership stated they expected this outcome and vowed to contest it, but the company’s digital coin, XRP, promptly tumbled. At first, XRP dipped from approximately $0.60 to around $0.51. However, it then rebounded slightly and stabilized at roughly $0.53.
Numerous market experts maintain that the token’s underlying strength remains solid, with some suggesting a potential significant surge in value within the upcoming months. This optimistic outlook is largely built upon XRP‘s pattern of response following the SEC’s initial action against Ripple in December 2020.
Following the recent occurrences, XRP emerged as the topic du jour among cryptocurrency enthusiasts, with numerous individuals debating whether the agency stands a viable chance in their ongoing appeal case.
Currently, it’s clear that the Securities and Exchange Commission (SEC) continues its pursuit against Ripple and the cryptocurrency sector, despite facing setbacks in recent months. While some anticipated the Ripple case to be resolved following a 2024 ruling where the company was ordered to pay a $125 million fine rather than the $2 billion initially sought by the SEC, the resolution of this nearly four-year-long struggle is yet to come.
What About an XRP ETF?
Since the introduction of ETFs that follow the performance of Bitcoin (starting January 2024) and Ethereum (from July 2024), there’s been much discussion within the community about which cryptocurrency might be next to have a U.S.-based exchange-traded fund.
Although Solana is frequently mentioned as a top choice, Bitwise has chosen a distinct path. As disclosed earlier this week, the cryptocurrency asset manager submitted an application in Delaware for a spot XRP Exchange-Traded Fund (ETF).
However, this still doesn’t mean that Bitwise has submitted a filing with the SEC, which is the regulator that decides whether these funds will see the light of day. As of now, an XRP ETF seems rather unlikely, given the ongoing battle between the watchdog and the company behind the token. Still, a registered entity in a US state is a step in the right direction for Ripple.
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2024-10-06 11:48