XRP (Ripple) investors just got fantastic news from the Securities Commission and Exchange

Many top cryptocurries are obtained through a process called miningwhich includes the use of powerful computers to solve complex math problems to help confirm transactions to the block. Miners play an important role in guaranteeing network security and earn new coins for it.

But XRP (XRP 5.04%) The criptocurrency is different, because it was directly released by Ripple, the company that created it. In other words, it is far from decentralized.

This structure was raised by red flags in the US Securities Commission (SEC), and eventually decided to sue Riple in 2020. years that he boarded that there was a violation of the Law on Financial Securities. The legal battle was underway until last week, when the sex agreed to settle the case in accordance with the promise of President Donald Trump to initiate pro-crypto administration.

With this huge burden it was built with Ripple’s shoulders, is XRP ready for significant upside down?

Image source: Getty Images.

How Ripple has arrived here

Sending money Banama in other countries can be a slow and expensive process. Not everyone used the same canvas infrastructure, so they often need intermediaries to help them solve any transmission, which can add given to the process. Riplle He developed a network for Ripple payments to solve this problem – allows bats to solve transactions between one directly, which means they are basically current.

Ripple created a cryptocurrant XRP to standardize each transaction and reduce costs. Banks in two different countries can have significant foreign currency fees when sending payments to their local currencies, so they can be sent to the KSRP each other. Each cross-border transfer is entered only 0.0011 CSRP in fees, which goes out on a fraction of the cent.

Therefore, unlike most others cryptocurrencyThe KSRP has the right case of use in the real world – but it was also the source of its regulatory troubles. The CSRP has a total offer of 100 billion tokens, but Ripple continues to control 41.4 billion and issuing them to institutions as needed to meet demand. Therefore, in its litigation of 2020. years, SEC The arguring XRP should be classified as financial security (such as supplies or bonds), and thus the subject of registration and detection requirements.

That the regulator won in case, it would force it forced to operate under strict rules of rules, adding significant conformity costs to his business.

In August 2024. The judge ruled that the KSRP could only be security when it is issued to institutions, but not when used in transactions or trades on crippto exchanges. Ripple was hit by a fine of $ 125 million, but investors watched the outcome as victory. Sex appealed the decision, which threatened to even tie in court in court, but that everything changed after Trump took office.

XRP investors just got great sex news

Trump nominated Paul Atkins to lead a second shortly after his choice of victory. Atkins is a large industry fan, which served as a co-presidential token alliance (an advocacy organization), as well as as a member of the Advisory Board hi SECURITIZE.

Atkinni closed 21. April after his certificate by Senate, but the Agency has already changed his approach to the crypto industry in anticipation of his arrival. Initially paused or withdrew active legal cases against CRIPTO exchange as bynance and CoinAnd investors speculated that Ripple could be the next.

DC decided to put his case against Ripple in April, and the two sides entered talks about settlement. Then 8. Maja, the regulator announced a street reduction in the amount of $ 125 million to only $ 50 million and efficiently turned off the rest of the case.

Do not deal further on the expenses for XRP

XRP increased by 370%, because Trump’s election victory last November, but has not yet recieved its record since 2018. years. It seems that his momentum stopped, because the token is more than 25% more than 25%.

Continuous growth of nets for hoops, in theory, in theory, increases demand for KSRP and increase its value. However, banks do not need to use XRP – can still benefit from current cross-border transfers within the coverage network even if they use them Fiat currencies. Therefore, the value of the KSRP is more determined by the feeling of speculative investors, not by organic demand.

The Security Case Resolution against Ripple is secure great positive for its job, but it will not necessarily translate into a sustainable upside down for XRP. As a result, investors might want to use caution before entering this speculative token.