Ripple (XRP-USD) looks stronger by the day in its ongoing battle with the Securities and Exchange Commission (SEC). The tide had already turned in Ripple’s favor of late, thanks to several legal victories. As a result, markets rewarded XRP by tripling its price in the preceding two weeks.
Let’s look at the crux of the ongoing legal proceedings, and recent news that further validates Ripple in defending itself against the SEC.
Beyond that, the cryptocurrency has news regarding its business.
Currency or Security?
The ongoing saga concerning Ripple and the SEC revolves around one central question: is Ripple a security or a currency? If it’s a security, then the SEC has jurisdiction over Ripple. If XRP is a currency, then the SEC does not.
As alluded to at the beginning of this article, Ripple is trending upward on positive news. The judge presiding over the ongoing case stated in the courtroom that Ripple is seemingly a currency.
Then Ripple and its lawyers were granted access to prior SEC filings regarding Ripple. This is an important step, because Ripple’s law team can comb through those memos in great detail. Should the legal team find any language that indicates the SEC ever hinted, or stated outright, that Ripple is a currency, the case may be over.
This news strengthened Ripple’s case that it has indeed been a currency all along. Markets have responded in kind, and the price of XRP has tripled in a few weeks.
Ripple’s Case Strengthens Again
Recent news indicates that the SEC was also using illegal intimidation tactics against Ripple internationally. Based on reports from Cryptolaw, it seems the SEC was issuing memorandums of understanding to governments regarding Ripple’s business. Ripple’s lawyers have found evidence of 11 or more MOUs in which the SEC attempted to influence overseas entities to hand over documentation regarding Ripple.
U.S. civil court rules dictate that the SEC cannot obligate foreign governments to produce information on Ripple’s business partners operating in those respective countries.
It looks increasingly likely that the crypto is going to win its case against the SEC. So if we assume XRP is going to be considered a currency moving forward, how does Ripple’s business look in that regard?
Ripple: Increasing Southeast Asia Footprint
One business case for Ripple’s utility is as a on-demand liquidity instrument in cross-border remittances and transactions. RippleNet allows streamlined global payments, and the company is expanding its network of business partners in that respect. Ripple and Novatti Group recently agreed to forge a partnership in which Novatti Group will leverage RippleNet to process thousands of remittances into the Philippines. The company intends to begin with the Philippines and expand out to other Southeast Asian nations.
Ripple previously expanded its Southeast Asian footprint in late March when it acquired 40% of Tranglo, a cross-border payments company in the region. It is clear that the crypto is going full steam ahead in building out its payments business. Readers should understand that XRP is fundamentally useful for this purpose.
Time will tell whether Ripple is successful in bringing down the barriers which plague cross-border payments. I’d say that right now, the price of XRP is likely to shoot up again, as the legal proceedings are clearly looking to favor Ripple. The increased business network only helps the argument that Ripple makes sense now.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.”