XRP (XRP) Rallies 30% Amid Settlement Optimism, Corrects Overnight as Matter Drags On

XRP, the cryptocurrency associated with Ripple Labs, experienced a significant price surge in recent days, fueled by growing optimism surrounding a potential

Cryptocurrency XRP, which is linked to fintech giant Ripple Labs, experienced a significant price surge in recent days, fueled by growing optimism over a potential settlement in its $2 billion fine dispute with the US Securities and Exchange Commission (SEC). However, the token's gains were erased overnight as the legal matter continues to drag on.

XRP climbed by 8% on Wednesday, reaching a price of $0.6586. But the token fell to $0.6045 at the time of writing, still up nearly 30% from a month ago.

The SEC filed a lawsuit against Ripple in December 2020, alleging that XRP is an unregistered security. Many in the industry had hoped for a resolution in Ripple's legal battle with the SEC, especially in July, which was anticipated to be a pivotal month for the company.

XRP advocate and attorney Fred Rispoli had speculated that the case would likely conclude around July 13 or July 31. But both dates have passed without a settlement, shifting market sentiment to a more cautious stance.

CEO slams SEC

Ripple CEO Brad Garlinghouse has not held back in his criticism of the SEC's inconsistent regulatory practices regarding cryptocurrencies.

In a recent statement on Twitter/X, he described the SEC's actions as potentially motivated by a "political agenda and/or bad faith litigation tactics. Definitely not a ‘faithful allegiance to the law.”

Highlighting the SEC's intention to amend its complaint against Binance, which includes allegations that the exchange offered and sold several "Third Party Crypto Asset Securities," including popular tokens like Cardano (ADA), Solana (SOL), and others, the statement suggests that the SEC is no longer seeking a court ruling on whether these tokens qualify as securities, further complicating the regulatory landscape for digital assets.

More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law". https://t.co/iX8IdvaW92

On July 27, former President Donald Trump pledged to eliminate regulatory restrictions on cryptocurrency and announced his vision to transform the U.S. into a leading global hub for digital assets. He also promised to replace SEC Chair Gary Gensler and create a dedicated advisory council focused on cryptocurrency, signaling a significant shift in approach to crypto regulation.

Expanding XRP ledger

In other news, Ripple is expanding the utility of its XRP Ledger. The company announced a partnership on Wednesday with OpenEden to introduce tokenized US Treasury bills onto the platform.

This initiative aims to enhance liquidity and broaden access to traditional financial instruments within the blockchain ecosystem. Ripple also said it will also allocate $10 million into OpenEden’s TBILL tokens, which will be part of a larger fund that Ripple will allocate to tokenized T-bills provided by OpenEden and other issuers.

The integration of tokenized Treasury bills could attract institutional investors who are searching for stable, low-risk assets while also leveraging the efficiency and speed of the XRP Ledger. This move could attract more financial institutions to the XRP ecosystem by offering a new asset class for trading and investment.

"Institutions are increasingly looking at where to tokenize their real-world assets and the arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading blockchains for real-world asset tokenization,” Markus Infanger, senior vice president, RippleX, said in the announcement.

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