Exchanges Relist XRP Amid Payments Promise and Despite the SEC
By Noah Washington August 20, 2023
- The Ripple Protocol, associated with the crypto XRP, has garnered considerable attention in recent years for its potential to transform cross-border payments
- Major cryptocurrency exchanges have relisted XRP following a court ruling on its regulatory status, although the SEC may not be don't
- The Bank of England has acknowledged the potential of Ripple's Interledger Protocol
- The developments surrounding Ripple's technology and the cryptocurrency's legal status indicate a promising future for blockchain technology
The Ripple Protocol, often associated with the cryptocurrency XRP, has garnered considerable attention in recent years for its potential to transform cross-border payments. Unlike traditional payment systems that require multiple intermediaries and may take days to process transactions, Ripple's protocol aims to enable synchronized settlement across various ledgers, including financial institutions and digital assets. This streamlined approach holds the promise of creating a fast, efficient and cost-effective payment ecosystem.
Currently, cross-border payments play a crucial role in today's interconnected world, facilitating trade, investment and financial flows between nations. However, the current system suffers from several drawbacks, including high costs, slow processing times and a lack of transparency. This has spurred the exploration of innovative solutions like CBDCs and Ripple's ILP to address these challenges.
Relisting on Major Exchanges
Major cryptocurrency exchanges such as Kraken, Crypto.com and Bitstamp have decided to relist XRP trading on their platforms after a recent court ruling in the ongoing SEC lawsuit against Ripple Labs. This is a notable development for the embattled cryptocurrency.
The SEC had claimed that XRP sales by Ripple amounted to an unregistered securities offering, but the court rejected this argument for secondary market XRP transactions. While not a complete legal victory for Ripple yet, the ruling provided important clarity that trading XRP on exchanges would not be deemed illegal.
Top ten XRP exchanges. Source: CoinGecko
This shift in regulatory uncertainty has given exchanges the confidence to resume XRP trading operations. The increased liquidity and accessibility is likely to reignite investor interest and trading activity for the cryptocurrency that had stalled under the legal cloud.
The partial win in court was significant because it drew a distinction between Ripple's direct XRP sales and everyday trading of XRP assets. By limiting the issue to just initial offerings, the judge's decision was interpreted as XRP not being considered illegal security when traded on exchanges.
Other platforms that delisted XRP such as Coinbase, eToro, and Binance are also reportedly considering relisting it after observing the market's positive reaction. The renewed optimism has led to a surge in XRP prices as investors anticipate further adoption and integration of the cryptocurrency into mainstream finance. Analysts say the court decision could set an important precedent.
Impact on XRP Price and Other Cryptocurrencies
The partial legal victory for Ripple has had a positive impact on XRP's price and the overall cryptocurrency market. After the court decision, XRP rallied strongly with its price jumping nearly 80% within 24 hours. The news triggered a wave of buying as investors rushed back into the cryptocurrency now that the legal uncertainty hanging over it had abated somewhat.
The dramatic single-day gain reflects renewed optimism and confidence in XRP's future prospects. XRP's price surge has also influenced the prices of other major cryptocurrencies. Bitcoin saw its price rise as the positive sentiment rippled across the wider blockchain industry. Ethereum also ticked up in price following the XRP spike.
XRP price over the past year. Source: CoinDesk
Analysts say XRP's price action has reinforced it as a bellwether of sorts for the crypto market. The SEC lawsuit against Ripple had weighed heavily on investor confidence over the past year. The renewed interest in XRP reflects improving sentiment and risk appetite across the board. And the SEC's recent ability to file a motion against Ripple shows perhaps more legal battling is ahead.
In the End
The Bank of England's recent paper on Ripple's Interledger Protocol marks a significant milestone in the world of cross-border payments. By exploring the potential of synchronized settlement and interconnected payment networks, the BoE has displayed a strong interest in leveraging blockchain technology for enhancing the efficiency and speed of transactions.
The recent court ruling in favor of Ripple Labs and the subsequent relisting of XRP by major exchanges have injected newfound confidence in the cryptocurrency market. As XRP continues to carve its place in the financial ecosystem, the broader cryptocurrency market stands to benefit from the renewed enthusiasm among investors. The SEC is certainly paying attention, and is continuing its legal fight until the bitter end.
But overall, the convergence of advancements in blockchain technology, cross-border payments, and cryptocurrency regulation signals a promising future for the financial industry, where innovation and efficiency are poised to reshape the way people transact and interact in the global economy.