Ripple CEO Brad Garlinghouse recently admitted that the company should have engaged with U.S. regulators earlier. Speaking at DC Fintech Week, he acknowledged that Ripple is now trying to make up for lost time after facing significant legal challenges from the U.S. SEC.
The SEC lawsuit against Ripple alleges that its XRP token was sold as an unregistered security. Although Ripple won a partial victory when a judge ruled that XRP sales to retail investors do not count as securities, the SEC is appealing this decision. This ongoing legal battle creates uncertainty for Ripple and its investors.
A Call for Better Communication
Garlinghouse expressed regret about Ripple’s earlier approach, emphasizing the importance of open communication with regulators. He recently criticized SEC Chair Gary Gensler for his over-regulatory approach to kill crypto which he described as a “reign of terror” against the crypto industry. Plus, he pointed out how negative incidents, such as the actions of Sam Bankman-Fried, have damaged the reputation of the entire crypto space.
Increased Political Engagement
In response to the challenging regulatory environment, Ripple has increased its political involvement. Garlinghouse has made more frequent trips to Washington, D.C., to discuss cryptocurrency regulation. Ripple has also invested nearly $50 million in political action committees (PACs) that support candidates from both major parties.
Notably, co-founder Chris Larsen recently donated $10 million to a PAC backing Democratic presidential nominee Kamala Harris. Although done in good faith, this move has created a controversy in the XRP community and many believe this move may be fatal for XRP and XRP ETFs in the US. This may bring SEC focus back in XRP.
XRP Current Scenario
Moreover, as Halloween approaches, XRP has seen a rough patch, dropping 3.41% over the past day, with trading volumes hitting $1.21 billion. The price fell from a high of $0.548 to a low of $0.528 amid a broader market sell-off. However, optimism remains among the XRP community, with 85% of voters anticipating a price increase. Historically, October tends to be a bullish month for cryptocurrencies.
According to AI predictions, XRP could rise to around $0.6647 by October 31, although it would still be far from its all-time high of $3.84 reached in 2018. The ongoing legal issues with the SEC have hindered its progress.
Credit: Source link
