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Amid a flurry of legal disputes and regulatory developments, XRP’s value has recently fallen back to levels seen before the ruling, prompting inquiries about the long-term effects of the ongoing conflict between Ripple and the U.S. Securities and Exchange Commission (SEC). This situation has led to contemplation on what could have transpired, with industry analysts and XRP investors questioning whether the cryptocurrency might have achieved greater success had the SEC lawsuit not interfered with its path.
John Deaton, the attorney representing XRP holders and founder of CryptoLaw, has expressed his views on the implications of the case for XRP’s advancement. He argues that Ripple’s legal challenges, initiated by the SEC in 2020 against Ripple and its senior executives, have considerably impeded XRP’s development and the progress of the XRP Ledger.
The legal contention originates from the SEC’s complaint filed in December 2020, which accused Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen of selling approximately $1.3 billion worth of XRP without registering it as a security. Although Ripple experienced a partial victory in July when the U.S. District Court for the Southern District of New York determined that XRP sales did not qualify as investment contracts, the lawsuit had already adversely affected the coin’s prospects.
Deaton’s recent evaluation indicates that the legal conflict deprived XRP of three vital years of adoption, a considerable drawback in the swiftly changing cryptocurrency environment. He emphasizes the impact of Coinbase, a previous supporter of XRP, which removed the token from its platform due to the lawsuit. Deaton notes that he increased his XRP holdings after Coinbase listed the coin, acknowledging its potential utility.
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Notably, Coinbase had undertaken due diligence measures, even contacting the SEC for clarification regarding XRP’s legal classification prior to its listing. This action aligned with the crypto exchange’s stringent framework for evaluating digital assets. However, despite these efforts, the SEC’s lawsuit against Ripple continued.
The recent growth of the USDC stablecoin networks by Coinbase and Circle has introduced a new layer of speculation. Deaton reflects on how circumstances might have differed had the lawsuit not taken place, proposing that Coinbase could have become an equity stakeholder in Ripple, potentially enhancing XRP’s adoption.
While Coinbase reinstated XRP for U.S. users following the significant ruling, Ripple partner MoneyGram chose a different route. Instead of renewing its partnership with Ripple, the remittance giant established a new collaboration with the Stellar Development Foundation in 2021 to leverage the USD Coin (USDC) stablecoin.
As the legal struggle continues and XRP faces the challenges brought about by regulatory ambiguities, the crypto community remains engaged in contemplating the ‘what ifs’ of the past. While XRP’s price faces difficulties in the aftermath of the legal turmoil, its advocates maintain hope that the coin’s potential will eventually prevail, despite the obstacles encountered.
The post XRP’s Rollercoaster: Legal Battles, Price Plunges, and Missed Opportunities appeared first on BitcoinWorld.
