XRP News: Why XRP Crypto Is Heating Up This Week
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There is a lot of anticipation building in the ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripplethe parent company of cryptocurrency XRP (XRP-USD). However, recent XRP crypto news surrounding the feasibility of Ripple’s defense is what many investors are calling for right now. XRP’s 3% rise over the past 24 hours (on a down day in the crypto market nonetheless) signals some bullish momentum in the short term.
Essentially, what investors seem to be pricing in is a pretty intriguing analysis of Ripple’s “fair notice” defense. According to a recent Supreme Court ruling, Romanian immigrant Alexandru Bittner was charged with failing to submit relevant reports for his 272 bank accounts. However, the ultimate penalty for this indiscretion was a single fine of $10,000 – a big win, considering he was facing a fine of $2.72 million. In this case, the SEC was found to have failed to provide substantial clarity regarding the reporting obligations required of Bittner, resulting in a lesser penalty.
How does this relate to XRP? Well, the SEC could be found to have failed to give fair notice to Ripple that it was required to register its coin offering as a registered securities offering. This potential error could invalidate the case. Or at least significantly reduce the penalties that the SEC was seeking.
Let’s dive into what investors can think of to make of this news.
XRP news sparks renewed interest
XRP is among the first crypto projects to see the wrath of the SEC. As one of the “old guard” in the crypto sector, its value as a low-fee cross-border payment option (via RippleNet) has brought significant attention to the idea that crypto can be used as a viable payment method, especially for large global transfers.
However, Ripple’s ongoing battle with the SEC has cast a dark shadow over the coin. Like most of its peers, XRP’s value has fallen significantly over the past year. Since the lawsuit started in late 2020, XRP’s underperformance has also been more severe compared to most of its major peers.
If this lawsuit ends in a positive way for XRP holders, there is a lot to be gained. The coin could have significant speculative upside among the top 10 cryptocurrencies by market capitalization.
Of course, the reverse is also true. Thus, the coin still appears to be a relatively binary bet right now.
Today’s news certainly points to a potentially bright outcome for XRP investors. That said, I remain on the sidelines of this project due to its ongoing legal risks. It’s just not a bet I want to make.
At the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
