Ripple investors and XRP holders aren’t the only ones keeping a close eye on the ongoing battle with the US Securities and Exchange Commission. Big banks are also taking keen interest.
Late last week, London-based IG Bank published an article on the ongoing Ripple vs. SEC case. The development is interesting because it proves that major financial players still pay attention to the crypto industry.
IG Bank is a Swiss-regulated financial institution offering investment and trading services to professional clients.
It noted that “an SEC victory could severely limit crypto companies’ ability to grow.” Furthermore, crypto companies like Ripple often launch new tokens to generate cash. The Bank gave a detailed account of the matter while coming to the conclusion that:
“A positive outcome for Ripple could see XRP soar, but with the matter up in the air, it is far from guaranteed.”
Ripple Case Crucial for the Future of US Fintech
Crypto Law founder and Ripple advocate John Deaton posted an ominous warning over the weekend:
“We will soon see the final and most aggressive push to shut down crypto,” he said after a White House policy brief on mitigating crypto risks. The statement read:
“We have spent the past year working to identify and mitigate the risks of cryptocurrencies using executive branch officials.”
The regulatory outlook in the United States is still very unclear. There are negative messages such as this statement and the SEC’s continued action by enforcement. But on the positive side, the newly appointed chair of the House Financial Services Subcommittee on Digital Assets wants to make the US number one spot For fintech innovation.
They can’t have it both ways, which means Ripple’s case is even more important. A positive outcome for Ripple would send the right message to fintech firms, attracting them to the US. The opposite result would result in an exodus of crypto companies and talent.
XRP price has not moved much in the past day. After a brief surge above $0.42 during the Asian trading session on Monday morning, the coin has recovered to $0.413.
XRP has gained almost 20% in the past month but has not performed as well as other leading assets like BTC or ETH.
Ripple’s cross-border coin remains down 88% from its January 2018 high of $3.40.
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