- Ripple is preparing for potential regulatory setbacks from the SEC, including a permanent ban on XRP sales to U.S. institutional clients, but continues to sell through foreign subsidiaries.
- The FIT21 bill, recently passed by the U.S. House, could influence the outcome of the SEC lawsuit, while XRP has rallied past resistance levels to trade at $0.5282 amidst ongoing market volatility.
In the midst of a contentious legal battle with the U.S. Securities and Exchange Commission (SEC), Ripple Labs is bracing for the potential fallout as the Securities and Exchange Commission vs. Ripple lawsuit nears a crucial phase. The outcome of this lawsuit could have profound implications not only for Ripple but also for the price and market perception of its native token, XRP.
Recently, Ripple has been preparing for the worst-case scenario: a permanent injunction or a complete ban on the sales of XRP tokens to its institutional clients in the United States. According to attorney Bill Morgan, Ripple has made arrangements to continue selling XRP to international clients through foreign subsidiaries, should the court rule in favor of the SEC. This strategy could allow Ripple to sidestep U.S. regulations under the Financial Innovation and Technology for the 21st Century Act (FIT21).
The FIT21 bill, which has garnered significant attention from crypto enthusiasts and stakeholders alike, recently cleared the U.S. House of Representatives and is now set for Senate review. If passed, the bill could potentially alter the regulatory landscape for cryptocurrencies in the United States, affecting ongoing legal disputes such as the one between Ripple and the SEC.
Despite these challenges, XRP has shown resilience in the market, rallying past stubborn resistance levels to trade at $0.5282 at the time of writing. This marks a positive uptrend for the cryptocurrency, although its journey has not been without volatility. XRP had experienced an 18% decline from its April high of $0.6431 to recent lows in May, before rebounding and breaking through resistance at $0.51.
Technical indicators suggest a bullish outlook for XRP in the short term. The Moving Average Convergence Divergence (MACD) has shown positive momentum, with the RSI (Relative Strength Index) also indicating a bullish trend. Analysts are closely watching the $0.5310 resistance level, as a break above this could pave the way for further gains to highs around $0.5703.
Investors and analysts remain divided on the potential impact of the FIT21 bill on XRP and Ripple. Some argue that the bill’s passage could alleviate regulatory pressure on XRP, while others believe it may exacerbate the legal challenges Ripple currently faces. Attorney Bill Morgan suggests that Ripple’s contingency plans to sell XRP through foreign subsidiaries could insulate the firm from the worst effects of a U.S. ban, should it materialize.
As the crypto community awaits the Senate’s decision on FIT21, XRP holders are keeping a close watch on regulatory developments and legal proceedings. The final outcome of the SEC vs. Ripple lawsuit could not only affect Ripple’s business operations but also influence broader perceptions of XRP’s status as a digital asset.
While Ripple faces significant regulatory hurdles in the U.S., XRP continues to demonstrate resilience in the market, supported by favorable technical indicators. As the legal saga unfolds and regulatory uncertainties persist, XRP investors are advised to stay informed and cautious amid the evolving landscape of cryptocurrency regulation.
