XRP Regains Lost Grown as SEC Drops Charges

In a stunning turn of events XRP the world's fifth largest Crypto Currency has experienced a significant resurgence with its value surging by 6.5% to reach 52 cents. This impressive rally has been ignited by the Securities and Exchange Commission's (SEC) decision to drop its security violation charges against Ripple executives, Brad Garlinghouse and Chris Larsen. The dismissal of these charges marks a pivotal moment for XRP and Ripple Labs. Rekindling optimism and offering a glimmer of hope for XRP loyalists and investors alike.

It's no secret that XRP has continued to suffer even through the incredible bull market we saw back in 2021 due to the ongoing litigation and legal uncertainty caused by the SEC. Prior to the SEC’s involvement XRP had reached price points of USD 5.00 but has struggled to regain that position due to the ongoing uncertainty.

Security and Exchange Commission's Decision

Three years ago the Securities and Exchange Commission accused Ripple Labs of violating securities laws by raising a staggering $1.3 billion through XRP sales to investors. This protracted legal battle cast a long shadow over XRP and the broader crypto currency market.

The SEC alleged that Ripple's offer and sale of XRP on digital asset exchanges amounted to offers and sales of investment contracts subjecting them to securities regulations.

However, the recent decision by the SEC to drop the charges against Ripple executives signifies a notable shift in the regulatory landscape surrounding XRP.

The dismissal of charges against Brad Garlinghouse and Chris Larsen comes after the Southern District of New York declared that Ripple's sale of XRP did not constitute the sale of investment contracts. Which was previously alleged by the SEC. This legal victory is a game changer for XRP as it releases the crypto currency from regulatory uncertainty that have loomed over it for years and costed the project success even in times of peaks.

XRP Price Boom!

The news of the SEC's decision has had an immediate and positive impact on XRP's price. The crypto currency surged to a high of 53 cents before eventually pulling back to 51 cents. This 6.5% gain reflects the market's support in relation to the crypto currency's future prospects. Now that the legal troubles faced by XRP are looking to be unsuccessful. This rally shows the strong support behind the project and that there is still strong investor confidence in XRP.

It's also important to understand that XRP isn't out of hot water just yet with the SEC not exactly born in the last shower, This sudden change of legal direction might be part of a broader strategic plan of the Government agency. It is believed that this move is aimed at expediting a different legal matter against Ripple without prejudicing the case. In the past, the SEC's handling of the Ripple case resulted in setbacks and negatively impacted their odds of winning the lawsuit.

Is this a new legal strategy for the SEC?

Legal cases are all about strategising against your opponent and bringing the strongest case forward to ensure your odds of success. Often cases will drop charges and pursue other areas of attack because that's where the strength lays in getting the outcome or part of the outcome you want.

By withdrawing charges against Ripple executives, the SEC might be seeking a more favorable position in the ongoing legal battle, which could have broader implications for how XRP is treated in the eyes of the law. While this is a significant step, the legal intricacies surrounding the case remain complex and further developments are expected.

Although XRP supporters and investors are celebrating this moment, as it represents a ray of hope after years of regulatory uncertainty. As the legal hurdles clear investor optimism in XRP is still remaining stagnant at this time. The greatest investor movement would be speculators and people taking a punt on the news causing hype and driving investment in the Crypto currency and are probably most likely not long term holders.

Although if we look at previous data we can see the previous court win did see XRP added to a lot more crypto exchanges, reopened promotional content and saw a lot more people adding XRP to their portfolio.

Given that the token does have a previous all time highs of over USD 4 people will be speculating that once the legal burdens have come to an end the token will surpass those price points as it hasn't had the chance to be able to succeed in this space as other crypto currency projects.

Investors do need to be mindful that the legal battles are continuing and that they are in no way over just yet which still continues to put doubt in investors minds. Although small wins do make up the shortfall for the time being. It is anyone's guess on what the end result will be.

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Posted Using InLeo Alpha