Introduction to XRP’s Market Comeback
XRP has recently made headlines by surpassing USDT and becoming the third-largest cryptocurrency by market capitalization, overtaking both Tether and Solana. This achievement marks a significant milestone for XRP, as it returns to a prominent position despite the ongoing legal battle between Ripple and the SEC. This resurgence is reminiscent of XRP’s status before the regulatory challenges began.
The Regulatory Hurdles and XRP’s Resilience
Fox Business journalist Eleanor Terrett has shed light on XRP’s tumultuous journey, noting that XRP was once the second-largest cryptocurrency. This changed following the SEC’s 2018 Hinman speech, which classified Bitcoin and Ethereum as non-securities. This classification created regulatory uncertainty for XRP, causing it to lose ground to Ethereum by late 2018. The Ripple case, particularly the “Hinman emails,” exposed internal SEC disagreements regarding the speech’s implications for other digital assets.
Despite the passage of six years, XRP’s regulatory status remains ambiguous, sparking ongoing debates about the classification of cryptocurrencies. These discussions continue to influence investor confidence and market dynamics.
John Deaton’s Legal Battle for XRP’s Fairness
Attorney John Deaton has emerged as a pivotal figure in XRP’s legal saga. Reflecting on his advocacy against the SEC, Deaton disclosed that his initial XRP investments were modest when compared to his holdings in Bitcoin and Ethereum. However, the SEC’s assertion that all XRP transactions were illegal galvanized Deaton to defend not only Ripple but also the global community of XRP users.
Deaton has pointed out notable inconsistencies in the SEC’s approach. In 2014, the U.S. Government Accountability Office categorized XRP as a virtual currency. The following year, FinCEN recognized XRP as a currency and established compliance guidelines for Ripple. By 2019, Coinbase listed XRP after conducting comprehensive legal reviews, and MoneyGram publicly stated its use of XRP in business operations. Despite these validations, the SEC initiated its lawsuit in December 2020, labeling XRP as an unregistered security, a move that sent ripples through the cryptocurrency sector.
Deaton was not alone in his support for XRP; the committed “XRP Army,” consisting of 75,000 members, remained steadfast throughout XRP’s trials. Many investors even doubled their holdings, demonstrating unwavering confidence in XRP’s potential.
XRP Price Surge and Market Outlook
XRP concluded November with an impressive threefold rally, reaching a seven-year high. The cryptocurrency demonstrated resilience despite the release of 1 billion tokens, a move that might alarm those unacquainted with XRP’s tokenomics. Following a brief 2.4% dip, XRP rebounded with a remarkable 29% surge, trading at $2.44.
As a new month unfolds, market observers are keenly watching XRP’s performance amid heightened trading volumes, which suggest the continuation of its upward momentum. Analysts remain optimistic about a significant price increase in January, especially in anticipation of potential changes in regulatory leadership.
