- Judge Torres ruled XRP programmatic sales didn’t meet the Howey Test, but the SEC’s appeal creates market uncertainty.
- Ripple’s RLUSD stablecoin approval enables operations on the XRP Ledger and Ethereum blockchain for faster payments.
- XRP’s low-cost, fast transactions boost adoption in underserved regions, enhancing remittances and global financial inclusion.
In July 2023, Judge Analisa Torres ruled that programmatic XRP sales did not meet the third prong of the Howey Test. However, the Securities and Exchange Commission filed an appeal related brief on January 15, disputing this decision.
Adding to James K. Filan, Better Markets submitted an Amicus Brief just before the SEC’s closed door meeting on January 23. While speculation rises about a potential withdrawal of the SEC’s appeal, no updates materialized to boost XRP demand.
Reports indicate that acting SEC Chair Mark Uyeda might pause enforcement cases lacking fraud claims. Meanwhile, uncertainty surrounds Trump’s SEC Chair nominee, Paul Atkins, as his confirmation process continues.
XRP as a Bridge Currency
XRP’s primary utility is serving as a bridge currency, facilitating transfers between digital and fiat currencies on the XRP Ledger (XRPL). Unlike digital assets primarily held for speculative purposes, XRP is optimized to meet the liquidity demands of financial institutions.
Ripple network aim is to provide cost effective and speedy cross-border payments. Its adoption by global financial institutions shows its potential to revolutionize international transactions.
Speculations and Market Sentiment
The Chicago Mercantile Exchange (CME) clarified it has not decided to launch XRP futures contracts, as reported by Fox Business’ Eleanor Terrett. This announcement dampened expectations within the XRP community, which had anticipated the launch of XRP futures to signal potential SEC approval of XRP based ETFs.
The resulting negative sentiment has pressured XRP’s price, creating market volatility. Analysts predict near term trends depend on the SEC’s appeal strategy, with current price movements ranging from $2.50 to $3.40.
According to Steph Is Crypto, XRP holders should prepare for increased volatility over the next three months, with potential daily gains of 20-30%. Egrag Crypto suggests XRP’s price could retest $2.83, with a possible drop down to $2.50, while a closing above $3.40 may shift the outlook positively.
Future Scenarios and Global Impact
Ripple recently secured regulatory approval for its RLUSD stablecoin from the New York Department of Financial Services, enabling its operation on the XRP Ledger and Ethereum blockchain.
This approval shows Ripple’s commitment to advancing digital payment solutions. While analysts predict a potential valuation of $35,000 to $50,000 for XRP, such numbers remain speculative. According to analyst Javon Marks, XRP’s 11X growth this cycle indicates further potential.
Globally, Ripple’s technology continues to enhance remittances and cross border payments in underserved regions. XRP’s low cost and high speed solutions are particularly impactful in areas with limited banking infrastructure, such as Africa and Southeast Asia. As adoption grows, regulatory clarity and utility will determine XRP’s price movements in global financial systems.
