Investors in Ripple (XRP) are currently discussing the potential impact of the Financial Innovation and Technology for the 21st Century Act (FIT21) on the price of XRP and the institutional sales of XRP tokens by the payment remittance firm. The outcome of this case is crucial as it could have significant implications for the market dynamics of XRP, the native token of the XRP Ledger, as well as the institutional sales of XRP tokens by the payment remittance firm.
Ripple is preparing for the worst-case scenario in the SEC lawsuit, according to attorney Bill Morgan. This scenario could involve a permanent injunction or a complete ban on the sale of XRP tokens to institutional clients in the United States. It is important for Ripple to be prepared for this possibility.
The recent approval of the FIT21 bill by the U.S. Congress has sparked curiosity among XRP holders regarding the potential impact on XRP due to the ongoing legal battle between the SEC and Ripple. The SEC is seeking a $2 billion penalty in its lawsuit against Ripple, alleging that the company conducted unregistered securities sales (XRP token sales) to institutional clients.
In anticipation of the worst-case scenario, Ripple has taken steps to ensure its defense. Even if the court issues a permanent ban on the sale of XRP tokens to institutional clients in the United States, Ripple will continue to offer its services and sell XRP to overseas institutional clients through entities that operate under different licensing regimes. This allows Ripple to navigate any potential restrictions in the U.S. market.
The impact of the FIT21 bill on Ripple’s sales may vary depending on the regulatory environment in different countries. Ripple has proactively obtained relevant licenses and ensures compliance with local regulations in order to continue its sales in countries where cryptocurrencies are regulated differently.
In terms of price, XRP has been trading at around $0.53 recently, according to technical analysis. It experienced a decline of approximately 18% from its peak of $0.6431 on April 9 to May 23. However, XRP has recently entered a consolidation phase since reaching its high on April 9 and has consistently surpassed the significant resistance level of $0.51 multiple times this week.
When examining the technical indicators, the MACD suggests that Ripple is experiencing positive momentum. Additionally, the Relative Strength Index (RSI) has risen to 50.12, indicating an upward trend for the asset.
It is important to note that the information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research before making any investment decisions.
