The recent $770 million penalty imposed on Ripple by the U.S. Securities and Exchange Commission (SEC) has sent shockwaves through the crypto community. The SEC’s claim that XRP is a security, combined with the substantial monetary penalty, has raised questions about the future of Ripple Labs and its native token, XRP. However, the outcome of the lawsuit may depend on Ripple’s historical engagements with federal bodies and the evolving classifications of XRP over the years.
This is not the first time that the nature of XRP has come under scrutiny. In 2013, Ripple’s key figure, Chris Larsen, actively engaged with federal bodies like the SEC and Treasury, explaining how XRP solves banking problems. The following year, the U.S. Government Accountability Office categorized XRP as a “virtual currency” within the decentralized Ripple payment system. In 2019, XRP was even recognized by the U.S.’s financial elite as a growing “virtual currency,” alongside BTC, ETH, and LTC.
John Deaton, a pro-XRP lawyer, highlights the SEC’s aggressive stance and their demand for a $770 million penalty. However, he believes that historical precedents, such as the SEC-LBRY case where substantial penalty reductions occurred, give hope to Ripple and its supporters. The upcoming Coinbase vs. SEC oral argument scheduled for January 17, 2024, could also have a significant impact on Ripple’s fate. A win for Coinbase might encourage the SEC to lean towards a settlement, while a loss could dim the prospects of a favorable outcome for Ripple.
The ongoing lawsuit against Ripple raises questions about the company’s future, but XRP’s pricing remains an intriguing aspect. Despite the regulatory challenges, XRP has recently demonstrated an impressive rebound. Its current price stands at $0.55, reflecting a 6.21% increase over the last 7 days. Dark Defender, a prominent figure in the crypto community, predicts that by the end of 2024, XRP could reach $6, representing a significant leap from its current position. This bullish momentum showcases XRP’s resilience and the unwavering faith of its investors.
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While the legal battle with the SEC continues, Ripple’s historical engagements with federal bodies and the ever-evolving landscape of the cryptocurrency industry may play a significant role in the outcome of the lawsuit. The final judgment from Judge Torres is not expected until late summer, or possibly even later. Despite the challenges and expenses faced by Ripple, the company remains hopeful due to its past interactions with federal bodies and the continuous development of the crypto industry.
Investing in XRP and other cryptocurrencies is made easy through trusted crypto exchanges like Coinbase. With over 100 million users, Coinbase offers a secure and regulated platform to buy Ripple (XRP) and over 200 other cryptocurrencies. Users can easily purchase XRP using PayPal and credit cards while enjoying low trading fees and access to more than 400 trading pairs. Coinbase is regulated by the SEC and FINRA in the USA, and by CySEC and FCA in Europe, providing users with peace of mind when conducting their crypto transactions.
It is important to note that while the information provided has been thoroughly researched, readers should conduct their own research and due diligence before making any investment decisions related to cryptocurrencies. Crypto News Flash, the source of this article, does not endorse any specific content, accuracy, quality, advertising, products, or services mentioned. Readers should always stay informed and exercise caution when dealing with cryptocurrencies to avoid any potential damage or loss.
