Embattled cryptocurrency XRP (XRP-USD) has seen its fair share of volatility over the past year. Like many of its crypto brethren, much of this has to do with the macro environment. However, for those who have followed this token even somewhat closely, the amount of headlines and XRP news that’s driven up and down days has far exceeded that of its peers over the past year.
That’s because XRP and its parent company Ripple have been embroiled in a lawsuit from the Securities and Exchange Commission (SEC), dating back to late 2020. XRP is one of the first cryptos to have been asserted to be a security by the SEC. Accordingly, the SEC has claimed initial coin offerings from Ripple Labs effectively constituted unregistered securities offerings.
Today, an intriguing tweet from journalist Eleanor Terrett suggested a closed-door meeting at the SEC could lead to an announcement on this ongoing case. Thus, sometime after 2 p.m. EST today could be when we hear what the ultimate resolution is with respect to this ongoing lawsuit.
Let’s dive into what this could mean for investors.
Could This Potential XRP News Boost This Token’s Value?
The debate on how cryptocurrencies should be classified is big in the crypto world. That’s because whether cryptocurrencies are deemed securities could dictate the ability for the SEC and other regulatory agencies to police this unregulated sector. And while many in the crypto community would welcome some level of regulation, it’s unclear how much would ultimately benefit token holders.
With that said, it’s clear a resolution to this case would likely be beneficial for token holders in the near term. With the uncertainty of the overhang of this ongoing litigation removed, investors could properly price in the token’s value absent this lawsuit. Indeed, whether XRP is successful or not will be a key determining factor with respect to the crypto’s directional move. But considering the fact XRP surged on this tweet last night, it’s clear most investors are looking for relief one way or another.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
