XRP’s price is struggling,
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Trading volume in 24h
Last 7d price movement
, but whether the SEC will appeal will impact Ripple’s price in the coming weeks and months.
The last four years were turbulent for Ripple, the blockchain company.
When everyone thought it was smooth sailing, the United States Securities and Exchange Commission (SEC) dropped a lawsuit against Ripple, the firm, and its executives like Brad Garlinghouse.
It marked a severe blow for XRP. Weeks later, the coin had dropped down the market cap rankings, falling to as low as $0.10.
Since then, however, there have been vital victories
The improving regulatory environment and the rise of pro-crypto policymakers have propped up XRP.
The July 2023 court ruling was a shot in the arm for XRP. Though the regulator appealed, the recent settlement is huge for the seventh most valuable coin.
XRP Price Is Down: Ripple Excitement is Fading
Despite optimism, XRP prices remain flat, looking at the daily chart.
Many expected the coin to fly, breaching $1 after the court ruling on August 7.
(XRPUSDT)
XRP is now steady, struggling to contain bears after the dump of September 7.
If there are gains lifting the coin above $0.55, it could spark another wave of demand, though the leg up won’t be as rapid as expected.
Still, the XRP and Ripple community remain upbeat.
For one, Ripple continues to funnel resources toward the growth of the XRP Ledger and is striking key partnerships.
One includes their deal with OpenEden for real-world asset (RWA) tokenization on the XRP Ledger.
RLUSD Blocked For Institutions
Nonetheless, Ripple’s move to launch a stablecoin is a big one.
Initially, the crypto community thought the firm planned to take on Tether Holdings and Circle.
It is now emerging that RLUSD, the stablecoin being tested on Ethereum and the XRP Ledger, will be available exclusively for institutions.
Since then,
According to the CTO, David Schwartz, the goal is to ensure RLUSD complies with existing rules and is secure.
I don't think that's likely to happen except maybe in very early test phases before anyone is really using it to move or store value.
— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024
By design, RLUSD, the Ripple executive said, will foster cooperation with financial institutions. From this, the stablecoin will easily bridge traditional and crypto financial systems, which is part of Ripple’s core mission.
The move to focus on institutions was not expected by the community and surprised investors.
Some see this decision as Ripple’s broader strategy to serve the big boys while remaining compliant, an anti-crypto business move.
Will The United States SEC Appeal?
Another headache facing XRP traders and investors revolves around the status of the seventh most valuable coin.
It seems like the United States SEC might appeal the recent ruling.
In July 2023, the court ruled that XRP is not a security when sold in secondary markets like Binance, Coinbase, etc.
This position will likely remain unchallenged.
A Ripple lawyer has taken to X, saying that if the regulator appeals, the focus will be on how Ripple sells XRP to institutions.
Don’t want to be accused of FUD with respect to XRP but obiter is not untouchable on appeal. The SEC did however indicate when it sought leave to file an interlocutory appeal it was not seeking to challenge the finding XRP itself is not a security. https://t.co/enuUlBTzA3
— bill morgan (@Belisarius2020) September 9, 2024
The United States SEC has always wanted an injunction barring Ripple from selling the coin to financial institutions.
It will serve as a severe blow for Ripple and XRP if they have their way.
It remains to be seen whether the regulator will appeal.
If they do, it will undoubtedly introduce more complexities to the extended legal battle, and XRP would be a casualty.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
