The Ripple company that revolutionized the blockchain-based digital payment system is going through a challenging time against the SEC, an American government agency that regulates cryptocurrency transactions.
The lawsuit began in 2020 when the SEC accused Ripple of using unregistered securities for exchange, which is opposed to the current financial legislation. However, the blockchain company fought the allegations, so the case is still going strong, with no apparent ending.
While some consider that the lawsuit has greatly affected Ripple’s image and value, the decentralized company is still trying to emerge from the situation and continue to develop the financial world, with the latest project nurturing technological development and inclusion. Such initiatives can influence the way investors perform a Ripple prediction because media coverage can influence its value. Hence, let’s see what it’s about.
On Ripple’s Partnership With The National Bank of Georgia
The newest collaboration between a decentralized company and a centralized one is Ripple and the NBG (National Bank of Georgia) to spread digitalization within the local economy. Although this is not the first time the two parties have chosen to work together, this project will deepen the collaboration and truly help the Georgian economy by advancing financial research on the “digital lari” initiative.
Ripple was first the partner of the Digital GEL Pilot Project, which would help the government understand the prominent use cases of cryptocurrency and try to form a development roadmap for approaching it. By using blockchain technology, the National Bank could better manage its relationship with the public and introduce a new way for the private sector to improve.
Does This Partnership Affect The Bank’s Validity?
The collaboration does not currently include any cryptocurrency trading or exchanging, as it mainly focuses on blockchain and decentralized methods of bringing better technological elements into our world.
On the other hand, the National Bank of Georgia is not alone in Ripple’s CBDC initiatives project, as countries like Colombia, Palau, and Montenegro have also accepted the challenge of working with Ripple for tech integrations. Therefore, we can say that the trend of official banking companies and blockchain-based businesses is taking a good turn in serving local communities, and experts are taking their time to explore the newness that cryptocurrency brings to the table.
Will The Lawsuit Affect Ripple’s Credibility?
The lawsuit has already lengthened on a four-year scale, and no one knows when it will end since the SEC is quite unpredictable. The latest update included a disagreement about a final penalty when the SEC recommended a $1.95B fine. At the same time, Ripple considered that $10M is more than enough for its violation of federal laws.
The lawsuit has indeed had a massive impact on the decentralized company and its cryptocurrency, XRP, because investors were afraid of the final result. The court has yet to decide if XRP is a security or not, and this factor is considerably vital for the lawsuit because it could turn the process upside down.
Many exchanges delisted XRP or restricted it, lowering trading volumes and hindering the cryptocurrency’s accessibility. While this is an approximate statement, it might be that the impact is more far-reaching, and we might not find the true insight until after the lawsuit ends.
Why is the SEC’s Approach So Aggressive?
Many investors and regular crypto users consider the SEC’s approach exaggerating. They believe the institution could have focused more on providing an accepting and appropriate legal framework instead of spreading fines here and there. Ripple is not the only decentralized project that has received too much attention from the institution.
The SEC has been involved in various lawsuits with exchanges like Coinbase and Binance, but many regular crypto firms have sued financial institutions over certain regulation problems. Although the institution stated that it only wants to charge fraud, its actions are making investors doubt its efficiency.
Many consider that the SEC has the power to introduce more laws on cryptocurrencies and make them safer to use while ensuring everyone has access to them. Some investors were baffled by the fact that governments imposed tax regulations without assessing proper guidance on filing documents for crypto income. Therefore, we can say there’s a lack of initiative and ideas when making cryptocurrency legal.
What Will Happen to XRP?
Predicting the final outcome of the lawsuit is close to impossible, as is predicting the future price of XRP in light of current events. However, experts outlined two possible variables regarding the cryptocurrency’s value and development.
The bull case, in which the coin’s popularity will increase due to favorable legal outcomes, might be possible as Ripple has had a few wins against the SEC. If the blockchain company wins, the price of XRP will experience a massive boom. Moreover, if this moment correlates with a reasonable period in the crypto market, XRP could see surging values like never before.
Of course, the bearish supposition follows a less positive finality of the lawsuit. However, this could also happen a few months after its end when the media attention will be focused on another subject, and investors will forget about XRP. The lawsuit might be the last to worry about because XRP isn’t necessarily the most helpful payment option out of all cryptocurrencies.
Regardless of what will happen to XRP in the crypto sector, we’re sure its involvement in the real world will count as much more important than winning against the government on a security matter. After all, the blockchain-based company is pushing forward towards improving and modernizing data systems, so we might see it thrive in a totally different ecosystem.
What Do You Think The Outcome Will Be?
The Ripple blockchain and its cryptocurrency XRP are going through a challenging situation of a lawsuit started by the SEC institution four years ago. The process affected the XRP price and discouraged numerous investors from pursuing their passion, especially since the SEC approached a similar action with big exchanges like Coinbase. However, regardless of its condition, Ripple is improving and helping the world by collaborating with central banks worldwide, the latest being Georgia.
