Ripple vs. The SEC will be a key issue for America’s Fintech Future
Ripple investors and XRP holders aren’t the only ones keeping a close eye on the ongoing battle with the US Securities and Exchange Commission. Big banks are also interested.
Late last week, London-based IG Bank published an article on the ongoing Ripple vs. The SEC case. The development is interesting because it proves that major financial players are still paying attention to the crypto industry.
IG Bank is a Swiss-regulated financial institution that offers investment and trading services to professional clients.
It noted that an “SEC victory could severely limit the ability of crypto companies to grow.” Furthermore, crypto companies like Ripple often launch new tokens to generate money. The bank described the case and concluded that:
“A positive outcome for Ripple could cause XRP to rise, but with the matter up in the air, this is far from guaranteed.”
Ripple Case Pivotal for Future of US Fintech
Crypto Law founder and Ripple attorney John Deaton issued an ominous warning over the weekend:
“We will soon witness the latest and most aggressive push to shut down crypto,” he said after a White House briefing on mitigating crypto risk. The statement read:
“We have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authority that the Executive Branch has.”
The regulatory outlook in the US remains very unclear. There are negative messages like this statement and the SEC’s constant crackdown on enforcement. But on the bright side, the newly appointed chairman of a House Financial Services Subcommittee on Digital Assets wants to make America number one place for fintech innovation.
They can’t have it both ways, which means the Ripple case is even more significant. A positive outcome for Ripple will send the right message to fintech firms, attracting them to the US. The opposite outcome will likely result in an exodus of crypto companies and talent.
Price outlook
XRP prices haven’t moved much in the last day or so. After a brief peak above $0.42 during Asian trading on Monday morning, the coin has returned to $0.413.
XRP has gained almost 20% in the past month, but has not performed as well as other leading assets such as BTC or ETH.
Ripple’s cross-border coin is still down 88% from its January 2018 peak of $3.40.
Disclaimer
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