Why is Ripple still on fire?
For the past two days, XRP has maintained a parabolic trajectory. The price has risen to more than 1.64 € in the last ten days. At the time of writing, XRP is worth € 1.39.
In recent months, cryptocurrency has been a hot topic. However, it is Ripple (XRP) that has recently captured everyone’s attention. XRP increased by more than 310 percent in two weeks, dethroning Bitcoin and Ethereum.
XRP is a digital asset designed for use with the XRP Ledger. It is a payment protocol similar to SWIFT that uses a consensus mechanism to validate transactions through a network of servers. Unlike Bitcoin, another digital currency that can be used to replace fiat currency, XRP tokens are used in the Ripple payment system, which is less expensive and faster than the Bitcoin network and other traditional payment systems.
Ripple’s latest triumph
In December 2020, the SEC filed a lawsuit against Ripple. Because the SEC considers XRP to be a financial security, Ripple and its executives have been accused of illegally selling over $ 1.3 billion in XRP tokens. (Security) has not been registered.
However, the long-awaited good news for XRP fans arrived a few days ago. As part of the investigation, Judge Sarah Netburn denied the SEC access to Ripple executives Chris Larsen and Brad Garlinghouse’s personal financial records dating back eight years.
If the lawsuit is getting so much attention, it’s because it has the potential to have a significant impact on the future of cryptocurrency regulation. Furthermore, the complaint’s timeline – seven years after Ripple issued its XRP tokens and as cryptocurrency becomes more mainstream – has many people wondering if the lawsuit is only for XRP.
The debate centers on whether the XRP token is a security token. If the answer is yes, XRP should be scrutinized by the SEC; otherwise, the SEC complaint is meaningless.
If the XRP token is classified as a security, it may set a precedent for making securities laws applicable to the trading of other digital assets. A large number of platforms and market participants would then be required to go through lengthy and complex regulatory procedures. As a result, many digital assets would lose their efficiency and low cost advantages. Furthermore, regulation in the cryptocurrency market may tighten. At the moment, the situation appears to be favorable to XRP.
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