Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC) has resulted in a major legal victory, which has given new hope to XRP investors and the wider cryptocurrency community. Not only has a recent court ruling clarified the legal status of XRP, it has also opened up potential financial innovations such as the long-awaited XRP Exchange Traded Fund (ETF). This could be a game changing moment for XRP, as some analysts predict that its value could rise to $20.
The legal battle reached a critical point in July after capturing the attention of the crypto world for months on end. Investors were eagerly awaiting an outcome that would bring this regulatory uncertainty hanging over XRP to an end once and for all. That breakthrough came when a federal judge ordered Ripple to pay $125 million in fines and adhere to new regulatory guidelines if it wanted to avoid more legal trouble down the line. But what really mattered about this ruling was not so much how much money Ripple had been told cough up or even what rules it now needs follow; rather, it was simply this: according US law makers XRP is not security.
XRP Perception Shift
The change in perception towards XRP by American authorities represents something of a watershed moment for both Ripple and its token’s future within wider financial markets. By acknowledging that they see no issue with labelling them “securities”, courts have removed one significant obstacle amongst many others which still exist today surrounding this company legally speaking at least! Additionally though such finding opens doors on various institutional investment products including exchange traded funds (ETFs) where these types vehicles are known attract huge amounts investor attention due their regulated nature.
With most of these doubts cleared up, it is now being suggested that we could see approval granted very soon indeed for spot XRP EFTs . Kashif Raza who founded Bit inning which educates people about bitcoins among other things said that , “this fine was related to sales made by Ripple Labs to institutional investors who are accredited under US securities laws. However, the court has made it clear that retail sales did not contravene any regulations.” Therefore, if we do now see a bitcoin-based ETF approved by the SEC it will make cryptocurrencies even more mainstream and could well push prices up significantly.
This potential ETF could have a profound impact on XRP’s market value, driven by increased confidence among institutional investors. With legal barriers now largely surmounted by Ripple themselves with its current legal battles against SEC as well other regulatory bodies around world over what constitutes securities being seen publicly debated this suggests that XRP is in pole position for future growth within next wave of retail crypto market adoption which makes it an interesting prospect for anyone looking at investing in digital currencies or trading them on exchanges where they can be bought/sold anonymously without traditional banking services required!.
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