XRP News Alert: Will Ripple’s SEC Crypto Battle End Today?

by Arthur · February 9, 2023

The fight against cryptocurrency XRP (XRP-USD) has seen its fair share of volatility over the past year. Like many of their crypto brethren, much of this has to do with the macro environment. But for those who have been following this token even slightly closely, the amount of headlines and XRP news that has driven the ups and downs of days far outstrips its peers over the past year.

That’s because XRP and its parent company Ripple has been involved in a Securities and Exchange Commission (SEC) lawsuit dating back to late 2020. XRP is one of the first cryptos to be claimed as a security by the SEC. Consequently, the SEC has argued that initial coin offerings by Ripple Labs actually constituted unregistered securities offerings.

In the day exciting tweet from journalist Eleanor Terrett suggested that a closed-door meeting at the SEC could lead to an announcement about this ongoing case. Therefore, sometime after 2:00 PM EST today, we may hear what the final resolution is with respect to this ongoing litigation.

Let’s dive into what this could mean for investors.

Could this potential XRP news increase this token’s value?

The debate about how cryptocurrencies should be classified is huge in the crypto world. That’s because whether or not cryptocurrencies are considered securities can dictate the ability of the SEC and other regulatory agencies to oversee this unregulated sector. And while many in the crypto community would welcome some level of regulation, it’s unclear how much will ultimately benefit token holders.

That being said, it is clear that a resolution to this matter is likely to be beneficial to token holders in the short term. With the uncertainty of the overhang of this ongoing litigation removed, investors could price in the token’s value without this lawsuit. In fact, whether or not XRP is successful will be a determining factor regarding the crypto’s directional movement. But considering that XRP rallied on this tweet last night, it’s clear that most investors are looking for relief in one form or another.

As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love of investing led him to earn an MBA in finance and take on a number of leadership roles in corporate finance and venture capital over the past 15 years. His recent experience as a financial analyst, combined with his fervor for finding undervalued growth opportunities, contributes to his conservative, long-term investment outlook.