XRP, the digital asset backed by Ripple Labs for cross-border payments and foreign exchange transactions, has seen a 33% increase in value over the past five years despite its ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC). Despite these challenges, XRP has managed to avoid the "altcoin graveyard," maintaining its potential for use in foreign-exchange transactions and cross-border payments.
Ripple Labs has been embroiled in a legal battle with the SEC, which accused the company of selling XRP as an unregistered security. Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larson countered this claim, arguing that XRP is a currency. This argument won favor with a New York judge who ruled in Ripple's favor, leading to the SEC retracting its lawsuit against them. However, the SEC is still demanding $770 million in penalties from Ripple for alleged securities laws violations.
The price of XRP has been significantly impacted by these legal issues. Other factors influencing its price include Bitcoin's price trajectory, which is often mirrored by smaller cryptocurrencies like XRP. The potential approval of a spot Bitcoin ETF (TSX:EBIT) from firms like BlackRock (NYSE:BLK) or Grayscale could further positively influence XRP's price.
The stance of SEC chairman Gary Gensler on crypto and the potential for altcoin ETFs, including a spot XRP ETF, could also affect XRP's future. As of November 2023, while XRP was once considered a prospective choice for mega-banks, it has not seen wide adoption.
In October 2018, XRP was valued at $0.45 per token in an altcoin market that is now under increased regulatory scrutiny. Despite these obstacles, Ripple Labs continues to back XRP and contends with regulatory bodies to secure its position in the market.
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