The value of XRP, a prominent cryptocurrency, is under significant pressure due to the U.S. Securities and Exchange Commission’s (SEC) ongoing lawsuit against Ripple. This legal battle challenges the regulatory status of XRP and casts doubt on its growth potential despite its technological strengths and broad adoption.
Ripple’s recent Q3 market report supports crypto influencer Amelie’s perspective that the SEC lawsuit is a crucial factor affecting XRP’s price. This challenge has kept creating uncertainty in the growth of digital assets by deterring other institutional and retail investors from investing in cryptocurrency.
Also Read: Ripple’s Escrow Mechanism Clarified as XRP Holdings Decline Amid Decentralization Push
Potential Shifts in U.S. Election Outcomes
The results of the U.S. election could make significant shifts in XRP’s laws that govern it. Amelie noted that if Donald Trump wins today’s election, he will dismiss Gensler, who has maintained a strict regulatory stance on cryptocurrencies. This change could significantly and positively affect the cryptocurrency landscape, benefiting XRP.
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Since December 2020, Gensler has taken a tough stance, and Ripple and XRP have been in a difficult place. However, with potential new faces at the helm of the SEC under the Trump administration, it might favor XRP. Monica, an investor in the crypto tokens, underlined on social media the key areas of focus, including the effects of change of guard in the government and regulatory boards on the value of XRP.
Optimism in the Crypto Community
Doq (@doqholliday), one of the market’s leading crypto influencers, chimed in with more thoughts about X — and Donald Trump’s desire to turn the United States into the “crypto capital of the world.” He also pointed out that with partial legal triumphs, XRP is the only token with reasonable regulatory certainty, which might be bound to enhance under Trump’s tenure.
As Ripple contends with these legal and political challenges, combining court outcomes and changes in the SEC’s leadership could crucially revalue XRP, enhancing its status as a regulated and reliable digital asset. Yet, the uncertainties necessitate caution among XRP holders, as these factors will likely influence the cryptocurrency’s price volatility in the coming months.
Also Read: Ripple’s Legal Battle Nears Resolution as Court Proposes Swift End with XRP Set for Potential Boost
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.