Ripple (XRP) has witnessed a slight increase of 1.1% in the past 24 hours, but it recently experienced a loss of 0.5%, causing its value to drop to $0.52. This regular chart reflects the current situation where Bitcoin struggles to surpass the $64,000 resistance level, while Ethereum prices fluctuate between the $3,100 support and the $3,200 resistance.
Recent Developments in XRP and the SEC Case
Ripple, the issuer of XRP, has made significant changes to its network, which is well-known for its blockchain-based cross-border payment system. Although the lawsuit between Ripple and the SEC is progressing with little hope of positive outcomes for XRP, the blockchain initiative has made structural adjustments to its On-Demand Liquidity (ODL) service, particularly for its customers in the United States.
As per a recent court filing, Ripple has decided to adopt the largest stablecoin, USDT, for its American clients. Ripple has been facing challenges with its ODL clients, but now its subsidiary based in Singapore will take charge of these ODL customers.
This move is seen as necessary due to a court ruling last year that classified corporate XRP sales as securities. Consequently, Ripple may be subject to a proposed $2 billion fine for violating US securities laws.
Expert Opinion on Ripple’s Strategy
Ripple has shifted away from XRP sales in the US, but it continues to indirectly engage in similar sales with firms outside the US. US-based firms are now opting to use USDT, which brings exchange transactions along with it. Bill Morgan, a lawyer and cryptocurrency enthusiast, believes that this move is worrisome for XRP. He expressed his concerns, stating:
“XRP holders are feeling anxious ahead of the court decision in the ongoing lawsuit. Some investors are also skeptical about the effectiveness of Ripple’s potential move from the US, indicating their readiness to exit.”
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry significant risks, and they should conduct their own research.
