• The recent price hike of XRP, the native digital token of crypto firm Ripple, was caused by investors and fans who felt that Ripple could potentially win its ongoing court case with the Securities and Exchange Commission (SEC).
• Ripple President Monica Long is hopeful that the facts and law are on the side of Ripple.
• SEC Chair Gary Gensler has commented on other crypto firms facing similar cases, such as Kraken.
The SEC’s Case Against Ripple
The Securities and Exchange Commission (SEC) is taking legal action against several digital currency companies for their involvement in token offerings or providing interest or other rewards through token investments. One such company is Ripple – a crypto firm whose native digital token XRP recently experienced a sharp price hike due to investors and fans feeling they had reason to believe Ripple could win its court case with the SEC.
Monica Long – current president of Ripple – issued a supplemental notice expressing hope that facts and law will be on the side of Ripple. Following these comments, XRP rose by 20 percent. Vice president of international crypto exchange Luno Vijay Ayyar also noted an overall rally in crypto markets given anticipation of a pause or slowdown in interest rates and inflation.
Kraken Facing Similar Issues
Another crypto firm targeted by the SEC was trading platform Kraken located in Northern California. The agency mandated that Kraken pay a $30 million penalty fee as well as end all staking services and activities associated with it. In response to this situation, SEC Chair Gary Gensler commented on how Europe is leading when it comes to setting clear regulations for both traditional finance and cryptocurrency companies alike.
It remains to be seen whether or not these regulatory actions from the SEC will have any long-term impact on these cryptocurrency companies, but what’s certain is that investors are still optimistic about one particular firm: Ripple. The facts may be in its favor, but only time will tell if it comes out victorious against this government agency or not.
Investors are optimistic about Ripple potentially winning its ongoing court case with the Securities and Exchange Commission (SEC), sending XRP prices soaring 20 percent shortly after President Monica Long expressed her confidence in the company’s chances based on „facts“ and „law“. However, other crypto firms such as Kraken were forced to part with hefty fines before them – making it difficult to predict what outcome awaits Ripple at this point in time.