Ripple: Long-Standing SEC Lawsuit Ends, What This Means For XRP (Rating Downgrade)

Mandela Amoussou
1.11K Followers
(10min)

Summary

  • Ripple gains a favorable outcome in its long-standing legal brawl with SEC. However, slight ambiguity remains in using XRP in Ripple's on-demand liquidity service.
  • Ripple is slammed with a $125 million civil penalty and a generic injunction order for further securities sales.
  • Despite the latest ruling, prospects of a spot XRP ETF remain slim, as no issuer has shown interest in filing for one, and demand for existing XRP ETPs remains weak.
  • The latest ruling could potentially spark some institutional interest in existing XRP ETPs as XRP gains more legal clarity.

Cryptocurrency Ripple

gopixa

The long-awaited resolution has arrived in the years-long, most-watched legal brawl in the crypto space. The long-standing legal brawl between the SEC and Ripple reached a final decision yesterday, with a fairly favorable outcome for Ripple (XRP-USD).

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This article was written by

1.11K Followers
Mandela has been a cryptocurrency enthusiast and trader since 2017. He loves coding and writing about cryptocurrencies and crypto investment strategies. He has an in-depth understanding of distributed ledger technology, the Web3 technology stack, and crypto investing. He enjoys researching and analyzing cryptocurrency projects, Web3 trends, and security tokens (digital securities). He is also a contributing writer for Seeking Alpha analyst James Foord.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in XRP-USD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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