The Ripple and XRP community continues to criticize the US SEC for its stringent regulatory actions, especially those extending beyond its jurisdiction.
The upcoming US general elections are expected to be a significant milestone for the widespread adoption of cryptocurrency in the United States, offering potential relief for XRP holders.
Following a nine-day bearish trend, XRP, backed by Ripple Labs, saw a price rebound on Thursday and Friday. This large-cap altcoin, with a fully diluted valuation of approximately $47.7 billion and a daily trading volume around $732 million, is nearing the climax of its multi-year triangular consolidation.
Given the current optimistic outlook for the crypto market, it seems likely that XRP is poised for a significant bullish surge, potentially sparked by a settlement between Ripple and the US SEC. As previously reported by Crypto News Flash, this settlement is gaining traction as the current administration’s term comes to an end.
Significantly, the US SEC has requested that Ripple be fined approximately $102 million for violating securities laws. The SEC maintains that XRP sales on crypto exchanges breach securities regulations, despite a previous ruling indicating otherwise.
Ripple Challenges the SEC’s Overreach
The SEC, led by Chair Gary Gensler, has been accused of exceeding its authority by regulating the crypto industry through enforcement actions. Ripple’s Chief Legal Officer, Stuart Alderoty, contends that Gensler has failed the American public by not providing clear cryptocurrency regulations.
Moreover, the court found that the SEC had unlawfully exceeded its mandate to regulate the crypto industry, among other sectors. For example, in the SEC vs. National Association of Manufacturers case, the court determined that the agency, under Gensler’s leadership, unlawfully rescinded a rule on proxy advisory firms without following the Administrative Procedure Act.
A court ruling criticized the SEC for unlawfully rescinding a rule on proxy advisory firms without adhering to the Administrative Procedure Act. The court highlighted that Gensler personally directed this illegal action.
National Association of Manufacturers v. SEC.
pic.twitter.com/NrXrV4x7OG
— Stuart Alderoty (@s_alderoty)
June 27, 2024
Earlier this month, a California judge dismissed all allegations that Ripple violated federal securities laws. Meanwhile, the New York ruling that XRP is not a security remains in effect, but the issues of institutional sales and large escrow holdings are still contentious.
The SEC’s recent decision to drop investigations against Ethereum has increased the likelihood of a similar outcome for XRP. However, Ripple’s substantial escrow holdings could negatively influence the final ruling.
Development Plans
The global XRP community is looking forward to a spot ETF filing soon, following the approval of spot Ether ETFs and the recent application for a Solana ETF. Ripple’s core development team has been actively building the necessary infrastructure to facilitate the mass adoption of XRP and its cross-border payment solutions.
Ripple has launched the XRPL EVM Sidechain to enable seamless web3 development with the Ethereum ecosystem. Additionally, Ripple plans to launch its US dollar-backed stablecoin later this year.
What’s Next for XRP?
During the ongoing crypto market correction, XRP has been attempting to establish a local bottom around 47 cents on the weekly time frame. The altcoin has risen approximately 3 percent over the past two days, trading around $0.476 on Friday during the New York session.
From a technical perspective, XRP must consistently close above 50 cents in the coming weeks to avoid a decline below 40 cents.
Recommended for you:
– Buy Ripple (XRP) Guide
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– More Ripple (XRP) News
– What is Ripple (XRP)?
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