The eagerly anticipated Q2 2023 XRP Markets Report was just released by Ripple, a company known for its XRP cryptocurrency. The report for this quarter used a unique approach and focused on some significant events. Analyse the corporate report for the second quarter of 2023.
The Securities & Trade Fee v. Ripple Labs Inc. case’s historic court decision from July 13, 2023, received the greatest attention in the article. The court ruled unequivocally that XRP is not a security. This decision is significant because it clarifies the regulatory status of XRP and establishes a standard for other digital assets in the US. The court’s ruling demonstrates that XRP, like Bitcoin, shouldn’t be classified as a security.
Why XRP Never Became a Safety?
The study also addressed various myths surrounding the court’s decision. First of all, it made it clear that the option was not one of dissolution but rather a significant victory for Ripple and the cryptocurrency industry. Second, it was made clear that while XRP alone is not a security, it may be regarded as such when combined with specific guarantees or arrangements. The judge ruled that XRP is not a security when used as a standalone digital token.
However, they also addressed the fallacy that the decision only safeguards large companies and not retail customers. It was stated that when there are no securities to control, the court loses jurisdiction, and that protecting small-scale cryptocurrency traders is a crucial policy objective that calls for thoughtful legislation.
According to the study, practically all of Ripple’s clients and counterparties are located outside of the United States, and its foreign subsidiaries continue to collaborate with non-American partners in clearly defined regulatory jurisdictions.
The worst-case scenario for the value of XRP
The price of XRP had a significant bounce after the court ruled in Ripple’s favour, jumping by 100% and reaching $0.965 in July. However, problems developed when it was thought that the Securities & Trade Fee (SEC) may appeal the court’s ruling on the XRP cryptocurrency.
The value of XRP has already dropped by 28% from its post-lawsuit rise as a result of this uncertainty. The value of XRP could be further pressured downward if the SEC decides to appeal and the appeal is unsuccessful for Ripple. Market analysts have identified probable assist ranges and believe that in the worst-case scenario, the value of XRP might fall to $0.520 or even lower, reaching $0.392. As traders respond to the value drop, a move like that could trigger selloffs.
However, the XRP price may continue to fluctuate inside a spread if the SEC decides not to appeal the court’s ruling or if the appeal is denied. A more pessimistic forecast would see the XRP price return to the middle of its most recent range, which is roughly $0.761.