XRP Wobbles on Uncertainly Over SEC Settlement; Ledger Expands
XRP, the cryptocurrency associated with Ripple Labs, experienced a significant price surge in recent days, fueled by growing optimism surrounding a potential settlement between the fintech giant and the US Securities and Exchange Commission (SEC) over its $2 billion fine, but corrected overnight as the matter continues to drag on.
The token climbed by 8% on Wednesday, reaching a price of $0.6586 but fell to $0.6045 currently, though it is still close to 30% up from its price just a month ago.
The SEC filed a lawsuit against Ripple in December 2020, alleging XRP is an unregistered security. July was anticipated to be a pivotal month for Ripple, with many industry observers hopeful for a resolution in its protracted legal battle with the SEC.
XRP advocate and attorney Fred Rispoli had speculated that the case would likely conclude around July 13 or July 31. However, as both dates have now passed without a settlement, market sentiment has shifted to a more cautious stance.
CEO slams SEC
Ripple CEO Brad Garlinghouse has been vocal in his criticism of the SEC's inconsistent regulatory practices regarding cryptocurrencies.
In a recent statement on Twitter/X, he described the SEC's actions as potentially motivated by a "political agenda and/or bad faith litigation tactics. Definitely not a ‘faithful allegiance to the law.”
He highlighted the SEC's intention to amend its complaint against Binance, , which involves allegations that the exchange offered and sold several "Third Party Crypto Asset Securities," including popular tokens like Cardano (ADA), Solana (SOL), and others. This development suggests that the SEC is no longer seeking a court ruling on whether these tokens qualify as securities, further complicating the regulatory landscape for digital assets.
More evidence of SEC hypocrisy.
— Brad Garlinghouse (@bgarlinghouse) July 30, 2024
Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion.
A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law". https://t.co/iX8IdvaW92
On July 27, former President Donald Trump pledged to eliminate regulatory restrictions on cryptocurrency and announced his vision to transform the U.S. into a leading global hub for digital assets. He also promised to replace SEC Chair Gary Gensler and create a dedicated advisory council focused on cryptocurrency, signaling a significant shift in approach to crypto regulation.
Expanding XRP ledger
Meanwhile, Ripple is expanding the utility of its XRP Ledger. In an announcement on Wednesday, the company said it has partnered with OpenEden to introduce tokenized US Treasury bills onto the platform. This initiative aims to enhance liquidity and broaden access to traditional financial instruments within the blockchain ecosystem. Ripple also said it will also allocate $10 million into OpenEden’s TBILL tokens, which will be part of a larger fund that Ripple will allocate to tokenized T-bills provided by OpenEden and other issuers.
The integration of tokenized Treasury bills could attract institutional investors looking for stable, low-risk assets while leveraging the efficiency and speed of the XRP Ledger. This move could attract more financial institutions to the XRP ecosystem by offering a new asset class for trading and investment.
"Institutions are increasingly looking at where to tokenize their real-world assets and the arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading blockchains for real-world asset tokenization,” Markus Infanger, senior vice president, RippleX, said in the announcement.