- The SEC is appealing a court decision that claimed XRP is not a security.
- Now the company awaits a more crypto-friendly agency.
- Analysts see XRP’s price rising.
The new year bodes well for XRP.
With a drawn-out court case between XRP’s parent company Ripple and the US Securities and Exchange Commission, analysts have become more optimistic.
“Should the SEC appeal be dismissed, or should the incoming SEC leadership choose to settle instead, this would be a huge win for Ripple,” said GSR research analyst Carlos Guzman.
He told DL News that a positive resolution should send XRP soaring.
In December 2020, the SEC sued Ripple for allegedly violating US securities laws when the company sold XRP to institutional investors. Judge Analisa Torres ruled last year that XRP was not a security.
But the SEC appealed Torres’s resolution, and now all eyes are on President-elect Donald Trump.
He takes office on January 20, and many crypto companies like Ripple are hopeful his administration will change the regulatory environment — pushing up prices in the process.
Trump has put forward several pro-crypto figures for key regulatory positions, including the SEC. He nominated crypto ally Paul Atkins as chair of the agency.
XRP to join Bitcoin
A favourable legal outcome would put XRP among a select group of digital assets, Guzman said. This could also mean an XRP exchange-traded fund is on the cards.
Bloomberg ETF expert Eric Balchunas predicts a deluge of new crypto ETFs — especially when considering the record success of spot Bitcoin ETFs. He reckons XRP should be among the first to receive its approval.
However, Guzman said that any new crypto ETFs face months-long approval processes.
Auspicious 2025
Ripple hopes for a bright future.
Growing adoption of the company’s new stablecoin RLUSD should strengthen its narrative as a legitimate payment option, Guzman told DL News.
And the recent crypto price rally might rekindle investors’ relationship with XRP.
“Given the resurgent retail interest in XRP that we saw in November and December, these positive developments could catalyse another wave of investor attention,” Guzman said.
Pedro Solimano is a Markets Correspondent at DL News. Got a tip? Email him at psolimano@dlnews.com.