In the midst of a pivotal legal battle for the cryptocurrency industry, one digital asset is leading the latest rally.
It is estimated that Ripple, the company behind the cryptocurrency in question, XRP, is on the verge of reaching an agreement with US regulators.
Over the past week, XRP has gained an impressive 40%, pushing its value to around $0.60. In comparison, BTC rose by approximately 12% during the same period. The rise in cryptocurrencies this week is partly due to expectations that Donald Trump will take a more positive attitude towards the sector if he wins the US presidential election.
The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in 2020, alleging that the firm violated its regulations by raising funds through the sale of the digital token without registering it as a security. The case received significant attention due to its potential implications for the SEC's jurisdiction. In a development seen by many as a setback for the institution, a U.S. District Judge ruled last July that sales of XRP to retail investors on exchanges did not constitute investment contracts.
Fueling speculation, the SEC's website lists a “closed meeting” scheduled for July 18, as seen in posts on social media platform X.
Zaheer Ebtikar, founder of crypto fund Split Capital, said, “Investors and traders are waiting for a conclusion to be reached on the status of XRP tokens. The whole issue regarding XRP depends on what the regulations will be.” said.
In a recent filing, Ripple Labs announced a $1 million donation to a new political action committee aimed at unseating anti-crypto Senator Elizabeth Warren and supporting John Deaton as the next senator from Massachusetts.
*This is not investment advice.
