Home Altcoins News XRP Price Rally Likely Sustainable as Ripple Anticipates $20 Million Settlement with SEC

XRP Price Rally Likely Sustainable as Ripple Anticipates $20 Million Settlement with SEC

XRP Price Rallies

XRP, the native cryptocurrency of the Ripple network, has been showing strong performance in the past week, outperforming most of its peers in the top 10 by market capitalization. XRP price has increased by 23% against Bitcoin and 17% against the US dollar in the past seven days, according to CoinMarketCap data. XRP price reached a high of $0.688 on November 20, the highest level since August 23.

What are the reasons behind this impressive rally? One of the main factors is the positive development in the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). The SEC sued Ripple in December 2020, alleging that the company and its executives sold XRP as an unregistered security, violating federal securities laws. Ripple has denied the allegations and argued that XRP is a digital asset, not a security.

The lawsuit has been a major source of uncertainty and pressure for XRP price, as some exchanges and platforms delisted or suspended XRP trading in the US. However, Ripple has been gaining the upper hand in the case, as the court has granted several of its motions and denied some of the SEC’s requests. For instance, the court ruled that Ripple can access some of the SEC’s internal documents regarding its views on other cryptocurrencies, such as Bitcoin and Ethereum, which the SEC considers as not securities. The court also denied the SEC’s motion to access Ripple’s legal communications, which the SEC claimed would show that Ripple knew XRP was a security.

The latest development in the case is that Ripple could pay $20 million in settlement, which would be a victory against the SEC, according to Attorney John Deaton, who represents over 60,000 XRP holders in the case. Deaton tweeted on November 19 that he believes the SEC will not be able to prove that Ripple sold XRP as an investment contract, and that the most likely outcome is a settlement that involves a penalty of $20 million or less, and a commitment from Ripple to register XRP as a security if it decides to do an initial public offering (IPO) in the future.

Deaton’s prediction is based on the fact that the SEC has recently filed a lawsuit against Kraken, a major cryptocurrency exchange, for allegedly offering unregistered securities, including XRP, to US investors. However, the SEC did not name XRP as a security in the complaint, which Deaton argues is a notable distinction from other cryptocurrencies that the SEC considers as securities, such as EOS and KIN. Deaton suggests that this implies that the SEC is not confident in its case against Ripple, and that it is willing to settle the matter without declaring XRP as a security.

Another factor that is boosting XRP price is the growing adoption and innovation of the Ripple network, which aims to provide fast, cheap, and reliable cross-border payments solutions for banks, financial institutions, and other entities. Ripple has recently announced several partnerships and initiatives that demonstrate its vision and potential. For example, Ripple has partnered with Bhutan’s central bank to pilot a central bank digital currency (CBDC) using its technology. Ripple has also launched a $250 million fund to support creators and developers who want to build on the XRP Ledger, the blockchain that underpins XRP. Ripple has also invested in Mintable, a leading non-fungible token (NFT) marketplace, to explore the integration of NFTs with the XRP Ledger.

XRP price has shown resilience and strength amid the legal challenges and market volatility. With the possibility of a favorable settlement with the SEC and the continuous innovation and adoption of the Ripple network, XRP price could extend its gains and target higher levels in the near future.

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Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

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