Ripple investors and XRP holders are not the only ones with a keen eye on the ongoing battle with the U.S. Securities and Exchange Commission. Big banks are also taking a 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 investments and trading to professional clients.
It noted that an “SEC victory could severely limit the ability of crypto companies to grow.” Furthermore, crypto companies such as Ripple often launch new tokens to generate cash. The bank detailed the case, concluding that:
“A positive outcome for Ripple could see XRP soar, but with the case in the air, this is far from guaranteed.”
Ripple Case Pivotal for the Future of US Fintech
Crypto Law founder and Ripple advocate John Deaton posted an ominous warning over the weekend:
“We will soon witness the final and most aggressive push to shut down crypto,” he said following a White House policy brief on mitigating crypto risks. The statement read:
“We have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has.”
The regulatory outlook in the United States is still very unclear. There are negative messages such as this statement and the SEC’s constant cracking down by enforcement. But on the positive side, the newly appointed chair of a House Financial Services Subcommittee on Digital Assets wants to make America the number one spot for fintech innovation.
They can’t have it both ways, which means the Ripple case is even more significant. A positive outcome for Ripple will send the right message to fintech firms, attracting them to the U.S. The opposite outcome will likely result in an exodus of crypto companies and talent.
Price Outlook
XRP prices have not moved much over the past day or so. Following a brief spike above $0.42 during the Monday morning Asian trading session, the coin has returned to $0.413.
XRP has gained almost 20% over the past month but has not performed as well as other leading assets such as BTC or ETH.
Ripple’s cross-border coin remains down 88% from its January 2018 peak of $3.40.
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