XRP remains outside Ripple’s Liquidity Club even after 5 months? Here’s how Ripple CTO reacts

XRP Price Explodes Over 70% as Judge Rules In Favor of Ripple in SEC Case XRP, the native cryptocurrency of the Ripple network, has surged by more than 70% in the past 24 hours, reaching its highest level since May. The price spike came after a U.S. judge denied the Securities and Exchange Commission's (SEC) request to access Ripple's legal communications. What is the SEC's lawsuit against Ripple? The SEC filed a lawsuit against Ripple and its executives in December 2020, alleging that they sold $1.3 billion worth of XRP as unregistered securities. Ripple has argued that XRP is not a security, but a digital asset that is used for cross-border payments and remittances. The company also claimed that the SEC did not provide fair notice to the market about its regulatory status. How did the judge rule in favor of Ripple? On June 30, U.S. Magistrate Judge Sarah Netburn denied the SEC's motion to compel Ripple to produce documents related to its legal advice on XRP. The judge ruled that Ripple's communications with its lawyers are protected by attorney-client privilege, and that the SEC failed to show a "substantial need" to access them. The judge also noted that the SEC's request was "overly broad" and "disproportionate". What does this mean for XRP and the crypto market? The judge's ruling is seen as a major victory for Ripple and a setback for the SEC, as it could weaken the agency's case against the company. The ruling also boosted the confidence of XRP investors, who have been waiting for a resolution of the legal dispute. XRP's price jumped from around $0.6 to over $1 in a matter of hours, making it one of the best-performing cryptocurrencies in the market. The rally also lifted other altcoins, such as Stellar, Cardano, and Dogecoin. What are the next steps in the lawsuit? The lawsuit is still ongoing, and both parties are expected to continue their discovery process until August 31. The SEC has also filed a motion to extend the deadline for fact discovery by 60 days, citing the complexity of the case and the need for more time to review documents. Ripple has opposed this motion, arguing that it would cause further harm to its business and customers. The judge has not yet ruled on this motion. Conclusion XRP's price has exploded over 70% as a U.S. judge ruled in favor of Ripple in its lawsuit with the SEC. The ruling denied the SEC's request to access Ripple's legal communications, which are protected by attorney-client privilege. The ruling is seen as a major win for Ripple and a boost for XRP investors, who have been waiting for a positive outcome of the case. The lawsuit is still ongoing, and both parties are expected to continue their discovery process until August 31.

Ripple has expanded its Liquidity Hub program to include stablecoins USDT and USDC products, especially for institutional investors. However, it became embroiled in a slew of rumors immediately after it was unveiled. XRP supporters were dissatisfied since XRP was not included on the list, despite a victory in a US court order that classified XRP as a digital asset rather than a security. Experts have examined the situation, and here are some likely explanations for why XRP is not included in Ripple’s flagship initiative. 

Based on market sentiment, Crypto Eri, a major player in the XRP community, refutes reports that Ripple is excluding XRP from worldwide payments. She predicted substantial customer demand for stablecoins such as USDT and USDC, which drove their inclusion in the Liquidity Hub.

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Furthermore, Crypto Eri emphasizes the rising importance of stablecoins in payment processing. According to Bloomberg, stablecoin payments exceeded Mastercard payments in 2022, with stablecoins processing more than $6.87 trillion compared to Mastercard’s $6.57 trillion. XRP has everything, but it must play the underdog since the market is still crippled by the SEC’s tough stance on crypto assets. 

Bill Morgan, an XRP champion, touched on the legal aspects of Ripple’s transactions with XRP. While it is apparent that XRP is not a security, questions remain about how Ripple will use the digital asset in its global operations. Ripple is not introducing XRP at this time to protect consumer interests from SEC examination. 

What Ripple has to say ?

Given Ripple’s large XRP holdings, substituting other cryptocurrencies for cross-border payments would be unfeasible. Furthermore, David Schwartz, Ripple’s Chief Technology Officer, emphasizes the strategic relevance of XRP inside Ripple’s ecosystem.

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The SEC issue has impacted the liquidity of XRP in the US market. However, Ripple’s CEO suggests that after the legal processes are completed, there may be a possibility of incorporating XRP into the Liquidity Hub, assuming adequate liquidity in the US market.