Ripple, the blockchain technology company behind the cryptocurrency XRP, is once again facing legal challenges, but this time from an unexpected source: the Attorney General of Oregon. This latest lawsuit targets Coinbase, the popular cryptocurrency exchange, alleging that several cryptocurrencies, including XRP, Solana (SOL), Cardano (ADA), Chainlink (LINK), and Uniswap (UNI), were offered and sold as investment contracts, or "crypto-securities." This development has sparked significant criticism within the cryptocurrency community.
Legal analyst Bill Morgan described the lawsuit as "dystopian nonsense," arguing that the prosecutor is overlooking crucial facts. For instance, Coinbase removed XRP from its platform in December 2020, shortly after the U.S. Securities and Exchange Commission (SEC) filed its lawsuit against Ripple. XRP was only re-listed in the summer of 2023 after a judge ruled that secondary sales of the token could not be classified as investment contracts.
Coinbase has a history of legal conflicts with regulators, having faced a 101-page complaint from the SEC two years ago for allegedly violating securities laws. Notably, XRP was not mentioned in that complaint, even as the SEC labeled other major altcoins like SOL, ADA, and MATIC as securities. However, the SEC's stance on cryptocurrencies has softened somewhat in recent months, with several lawsuits being dropped, though the long-standing case against Ripple remains unresolved.
Last month, Ripple CEO Brad Garlinghouse announced a significant victory when the SEC withdrew its last appeal, which many saw as a potential resolution to a four-year legal battle. Ripple's legal director, Stuart Alderoty, confirmed this development, which was celebrated by the XRP community as a sign that the lengthy struggle might finally be coming to an end.
However, the legal saga is not entirely over. Earlier this month, Ripple and the SEC jointly requested a temporary suspension of their respective appeals, a request that was approved by the U.S. Court of Appeals for the Second Circuit. This agreement allows both parties additional time to reconsider their positions without the pressure of immediate legal proceedings. The SEC has been ordered to submit a status report within 60 days, which adds another layer of uncertainty to the ongoing situation.
In the midst of these legal battles, Ripple has made significant strides in its business operations. Recently, the company announced its acquisition of Hidden Road for $1.25 billion, marking its largest acquisition to date and one of the biggest in the history of the cryptocurrency sector. This acquisition allows Hidden Road to utilize RippleUSD (RLUSD) as collateral through the XRP Ledger, granting Ripple access to approximately 300 institutional partners and enhancing the use of its network.
Despite these advancements, questions remain regarding Ripple's future plans, particularly concerning its application for a banking license. Notably, Ripple has yet to apply for such a license, which could enable the company to expand its financial services significantly. Legal experts like John Deaton have urged Ripple to pursue a banking license, especially following the acquisition of Hidden Road, as it aligns with the company’s goals of spreading its financial technology globally.
The uncertainty surrounding Ripple's intentions may also be contributing to the underwhelming performance of XRP in the market. As of now, XRP has seen a slight decline of 1.2%, trading at around $2.10. Since claiming support at $2 on April 12, the altcoin has been trading within a narrow range between $2 and $2.15. Analysts are closely monitoring the situation, noting that the 30-day and 200-day moving averages are converging, which could indicate an upcoming breakout.
In a positive scenario, XRP could rise above $2.11 and potentially reach resistance levels at $2.15 and $2.30. Conversely, if it falls below the $1.95 mark, it may drop further toward its support at $1.80. However, XRP might find additional support around $2.06 and $2, which could stabilize its value amid the ongoing uncertainty.
Interestingly, some speculate that Ripple may have strategic reasons for delaying its banking license application, possibly focusing on other partnerships or waiting for the conclusion of its legal battles with the SEC. With the potential for a settlement looming, the XRP community remains hopeful that the token can consolidate above $2 and potentially explode to a new all-time high above $3.84 later this year.
In addition to Ripple's developments, the cryptocurrency landscape is witnessing the emergence of new tokens that could benefit from the overall growth of the sector. One such token is $SUBBD, designed for and by content creators. This token aims to enhance experiences for both creators and followers by allowing creators to use $SUBBD to develop AI-generated influencers, thereby building a fanbase and a revenue stream. Followers can access premium content and behind-the-scenes insights with $SUBBD, which is currently available in a presale.
The ongoing developments surrounding Ripple and XRP are critical to watch as they unfold. With the legal landscape shifting and Ripple making significant business moves, the future of XRP remains uncertain yet full of potential. Investors and analysts alike are eager to see how these factors will influence the cryptocurrency's trajectory in the coming months.
