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- By dismissing the SEC’s assertions that Ripple’s sale of XRP on secondary platforms constituted security sales, Judge Analisa Torres set a possible precedent for an entire sector.
- With an expected settlement that many believe will favour Ripple, XRP is poised to render traditional bank accounts obsolete and dominate a trillion-dollar payments industry.
Earlier this year, Judge Analisa Torres delivered a bombshell to the SEC’s attempt to bring down XRP, declaring that Ripple’s sale of the token on secondary trading platforms didn’t constitute securities transactions. The ruling has had a great ripple effect and many now expect the legal battle to end up in a settlement that strongly favours XRP and Ripple.
As CNF reported, New York Judge Torres ruled that mere sales of XRP on secondary platforms couldn’t be held against Ripple as violations of securities laws. It then led to the SEC withdrawing its case against CEO Brad Garlinghouse and founder Chris Larsen in which it had alleged they aided Ripple’s securities violations.
Since then, Judge Torres has held strong in her convictions and dismissed an attempt by the SEC to challenge the ruling. The agency attempted to throw in its case against Terraform Labs, the company behind LUNA and UST, but the judge was able to see through the manipulation and threw this out as well.
Aware that its case was falling apart, the agency withdrew its charges against Garlinghouse and Larsen and in this lies one of the biggest indicators that the agency is preparing for a settlement. SEC is known for pushing hard in cases where it has even a slight chance of a victory, with the $4 billion Binance settlement and CZ’s resignation the latest proof.
With its case falling apart, the SEC is believed to be working towards a settlement that would be lenient on Ripple and XRP. Experts expect that XRP will be allowed to continue trading on exchanges freely. With this kind of regulatory clarity, XRP will become the first crypto that investors and users can be certain is immune from regulatory crackdowns. The case would also set a precedent for all the other crypto projects that the SEC is going after.
XRP to Render Traditional Bank Accounts Obsolete
Armed with regulatory clarity, XRP is poised to render traditional bank accounts obsolete, one expert says. The Australian market commentator, who is a former banker, says that the banking industry suffers from some key challenges that XRP could solve. They include slow and inefficient payment processing, poor execution of payment ledgers and inefficient maintenance of accounts and balancing.
🏦I worked in banking for 4 years
Not the longest by any means, but more than enough to see the issues with legacy finance
• Process Payments
• Execute Payment Ledgers
• Maintain Accounts/BalancingHeres why I think $XRP & $XLM etc will DISRUPT payments
As we all know,… pic.twitter.com/1jmV5OyhJQ
— Kyren (@noBScrypto) October 4, 2023
“Of course, we know that with XRP, we now have the ability to send value of any kind globally & receive it in seconds, all while costing less than a fraction of a cent in fees. This alone would clear out the need for both payment service providers (PSPs) & Nostro accounts,” he pointed out.Â
XRP is trading at $0.6225 at press time, gaining 1.7% in the past day. Experts have pointed out that the crypto is in a consolidation phase. The RSI has dropped below 50, which is worrying as this indicates bearish momentum.
The crypto needs to maintain its price above $0.5773 which analysts cite as critical support. Dipping below this level could end up in a testing of the $0.4595 support. However, if bulls take control and push it to close above $0.687, the next level to watch would be $0.8 and breaking past this resistance could set up the crypto for a surge.
