Despite the legal obstacles, many cryptocurrency investors are showing an inclination towards the $XRP cryptocurrency, but on the other hand, some people are against the investment option in $XRP coins. This guide will help you understand whether you should consider $XRP coin in any cryptocurrency investment portfolio or not, or what the degree of risk is.
Introduction: Ripple and $XRP
Vibe is a San Francisco-based blockchain company known for its payment services. The $XRP cryptocurrency is backed by the Ripple blockchain team to ensure continued development in the XRP Ledger (XRPL) ecosystem, to make the $XRP coin an active cryptocurrency in the crypto space. Here, people need to know that Ripple and $XRP are independent and Ripple does not control the XRPL network.
Current Price Action
The current trading price of $XRP coin is $2.09 and this price level is 240% higher during the last 90 days of the period.
The notable rise in the trading price of the $XRP coin began in November 2024 (from $0.55 to $2.7) following bullish sentiments in the crypto space.
At this stage, most crypto analysts are distancing themselves from sharing any type of solid analysis on this Cryptocurrency. Therefore, most retail cryptocurrency investors fail to establish a strong mindset regarding their investment decision in this cryptocurrency.
We can see that recently a crypto analyst, Alit_Chart, shared his analysis but was unable to predict any major price action for this cryptocurrency, which also clearly shows the tension among experts.
However, retail traders are delaying making important decisions to invest in this cryptocurrency, but whales are continuously purchasing in large quantities.
Legal obstacles versus legal clarity
The United States Securities and Exchange Commission (SECOND) sued Ripple and its executives over the sale of $1.3 billion in $XRP coins and also labeled $XRP as an unregistered security token, in December 2020.
That lawsuit is still active, but developments in the case showed that Ripple and $XRP are independent and $XRP is not a security token, meaning the SEC agency has no authority to interfere in financial activities or on the legal nature of $XRP Cryptocurrency.
Just a few months ago, the SEC body requested to consider a new hearing in this active legal battle, as the SEC body still believes that $XRP is an unregistered security token.
As $XRP and Ripple are legally independent, we as crypto investors should not consider any legal obstacles associated with Ripple signing, but the new audiences of the future regarding the $XRP coin may bring new obstacles for Ripple’s financial activities. linked to XRP, as well as for cryptocurrency investors, if the court ruling calls for the unregistered security token $XRP on behalf of the SEC lawsuit.
However, the judges have already spent a lot of time on this matter, where almost everyone is satisfied with the court ruling except the SEC officials, but we cannot ignore future hearings as an important fact for volatility. in the price of the $XRP coin.
Changing Crypto Regulatory Environment in US Jurisdiction
As we know, the current situation of the sector is quite favorable in the jurisdiction of the United States of America (USA), thanks to political rivalries.
Bitcoin critic President-elect Donald Trump became a Bitcoin advocate in late 2023 and showed full support for Bitcoin and the crypto space during his presidential election campaigns between 2023 and 2024.
Along with Trump, other presidential candidates spoke about the crypto space and promised to improve the regulatory situation so that crypto companies conduct crypto-related business activities smoothly and under very clear rules and laws.
Most importantly, Trump promised that he would remove cryptocurrency-hating SEC Chairman Gary Gensler from the SEC agency and allow only those rules that will help cryptocurrency adoption and ensure investor protection.
Just a few weeks ago, current SEC Chairman Gensler announced that he would resign from his position by January 20, 2025, just before Trump became president of the United States.
Trump has already nominated Paul Atkins for the position of SEC chairman. Atkins is known for his pro-cryptocurrency stance and also has experience creating better economic policies during his previous tenure on the SEC body.
Legal experts believe that the SEC body will withdraw several cryptocurrency-related lawsuits, which were filed under Gensler’s leadership. However, no one knows exactly what will happen, but if it happens, then surely the $XRP cryptocurrency will overcome all legal obstacles.
In the current scenario, we can say that $XRP will always remain in a better position, based on the current scenario, although the demand for $XRP is still active.
So, here we can suggest that people consider $XRP as an investment asset in their cryptocurrency portfolio, but we also suggest that they do self-research to ensure the risk and reward probabilities.
XRP Lawsuit Linked to BinanceUS and Other Major US Crypto Exchanges
Currently, many major crypto exchanges are facing legal hurdles due to SEC lawsuits. These exchanges include Binance, Kraken, Robinhood, etc.
All of these crypto exchanges face similar charges of offering unregistered securities offerings in the US jurisdiction.
Notably, Binance Exchange settled the case with all US authorities but denied any settlement with the SEC body. This is probably an indication that most of the crypto exchanges, including the Ripple company, are in contact to fight the SEC allegations.
Problem with the SEC body
Many SEC commissioners called the SEC’s lawsuits against crypto companies a poor approach to cryptocurrency regulation. Instead, the SEC body should provide very clear rules and laws so that companies can follow the rules perfectly.
In 2024, some crypto companies revealed many details about their conversation with the SEC body and confirmed that the SEC body never created any kind of rule or law that would allow crypto companies to register to offer securities offerings.
Some companies provided evidence that the SEC agency never gave authority to any company to provide even limited cryptocurrency-related services, but always interfered in cryptocurrency-related business activities, which was outside the agency’s authority. of the SEC.
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