XRP Prices Reach Highest in Over 5 Months Amid Regulatory Developments
XRP, the digital currency of Ripple, has been rallying lately and has climbed to its highest value in over five months.
By March 29, XRP had risen to $0.58, up over 25% in about 7 days.
The cryptocurrency has had a great month, with its value rising by over 50% since March 12. The surge in XRP prices is attributed to ongoing regulatory developments that could affect its status.
The XRP lawsuit and regulatory uncertainty
XRP has been under scrutiny following a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in 2020, which claimed that Ripple Labs, along with its CEO and co-founder, raised over $1 billion by selling unregistered securities. The ongoing lawsuit has created regulatory uncertainty and has negatively impacted the value of XRP.
Recently, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit involving cryptocurrency exchange Binance. The regulator described Bitcoin, Ether, and Litecoin as commodities.
Some analysts believe this lawsuit could eventually lead to XRP being declared a commodity instead of a security, which could end the ongoing litigation between Ripple and the SEC.
Andrew Rossow, an attorney and the founder and CEO of AR Media, said that the CFTC lawsuit has had a bullish impact on investors. He believes that if XRP is characterized as a commodity, then any hesitation associated with XRP and its pending litigation with the SEC could come to an end in favor of both holders and the company. However, Rossow also stated that regulators are still teaching through enforcement instead of being clear and concise about their expectations, which creates further uncertainty for the crypto industry.
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Joe DiPasquale, CEO of BitBull Capital, also commented on the situation. He stated that XRP largely moves based on speculation around the SEC case and has benefited from the recent market rally and regulatory actions against entities. He believes that if all major crypto assets come under regulatory scrutiny, XRP could benefit from a leveled playing field.
The impact of regulatory developments on XRP
While it is unclear whether the CFTC lawsuit directly fueled XRP’s recent gains, it has contributed to the positive sentiment that XRP could be a commodity. The ongoing regulatory developments and lawsuits have created uncertainty and hesitation for investors. However, some believe that a declaration of XRP as a commodity could end the ongoing litigation between Ripple and the SEC and create a more positive outlook for the cryptocurrency. Regardless, the current regulatory approach creates further uncertainty and hesitation for the crypto industry.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
