As the XRP price churns around $0.63, XRP seems to be stuck. Will the bullish momentum return?
Ripple (XRP) began the week with a promising surge, climbing from $0.62 to $0.65. However, the cryptocurrency has struggled to maintain bullish momentum, dipping by 5% shortly after Christmas and falling below $0.62. At the time of writing, XRP is trading around $0.63, showing a slight recovery in the last 24 hours.
XRP Bulls vs. Bears
In December 2023, Ripple reportedly transferred 240 million XRP from its escrow account, leaving over 96 million XRP in its main spending wallet, equivalent to about $60 million at press time. Crypto observers were worried that there would be a sell-off by the end of 2023. In contrast, some analysts suggested the remaining XRP might not be released immediately.
According to Ali Martinez, Global News Director at BeInCrypto, whales have accumulated significant XRP worth millions over the past week. This buying activity, totaling $223 million, suggests that the whales may be positioning themselves for a potential rebound.
XRP Faces Uncertainty from Political and Regulatory Factors
Ripple lawyer John E. Deaton commented on a post from X that highlighted two articles from The New York Times. The first, from 1995, addressed concerns about government surveillance infringing upon civil liberties and privacy. Meanwhile, the 2023 article discussed the perceived necessity for increased surveillance measures.
John questioned the aim of Senator Elizabeth Warren’s Bill, suggesting the Federal Reserve’s possible launch of a CBDC in alliance with major banks. He said Elizabeth’s reelection campaign could target shaping and dominating the anti-crypto discourse.
“This is ALL being coordinated by Senator Warren and her anti-crypto army, being co-chaired by Jamie Dimon. They want to introduce a CBDC controlled by the Federal Reserve, in conjunction with the Big Banks. She is using her campaign for reelection as a way to create and control the anti-crypto narrative.”
John further commented on the US Presidential Election and the prospects of the Bill transitioning into law. He said dismissing Warren’s Bill solely based on the current House composition needs to be corrected. He highlighted a chance for political dynamics to change in 2024, potentially paving the way for the Bill’s passage if the Democrats retake control of the House.
More Legal Nonsense in The USA
While Deaton concedes the possibility of Democrats securing a comprehensive victory in the Presidential Election, he remains skeptical about the passage of Warren’s Bill in 2024.
Ripple’s lawyer continued to discuss the potential impact of the upcoming 2024 US elections on the future of cryptocurrency regulations in the US. John presented two scenarios based on the outcome of the election. The Democratic win could lead to the passing of Senator Warren’s anti-crypto bill, likely restricting the digital asset space.
On the other hand, a Republican clean sweep would be favorable for the US digital asset space.
Warren’s Bill aims to restrict crypto heavily, while the RFI Act aims to support innovation while protecting investors. The RFI Act also seeks to give more authority to the CFTC (Commodity Futures Trading Commission), reducing the SEC’s influence on crypto regulations.
This is potentially positive for crypto in the US as the CFTC is generally considered more crypto-friendly than the SEC.
Ripple CLO Unveiled SEC Lawsuit Settlement Offer
Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), recently unveiled specifics of a 2020 settlement proposal by the US financial watchdog, before initiating the lawsuit, the SEC suggested publicly declaring XRP as a security, allowing market players a brief window to align with this classification.
Ripple declined this proposition, citing two primary reasons. Firstly, Ripple firmly believes XRP doesn’t fall under the category of securities. Secondly, the SEC must provide a comprehensive regulatory framework concerning cryptocurrency compliance.
Despite differing perspectives from past SEC representatives, Ripple remains steadfast in its mission to establish that XRP isn’t a security. Of course, XRP can be used anywhere – so the US-centric focus might end up looking short sighted as time goes on.