Setting the Stage for Change
As 2021 unfolded, Ripple found itself navigating turbulent waters after a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) under the watchful eye of the Trump administration. However, the dawn of a new presidency brought a glimmer of hope for the blockchain firm.
Ripple’s Optimism Amidst Uncertainty
In a recent blog post, Ripple’s leadership, including CEO Brad Garlinghouse and co-founder Chris Larsen, expressed cautious optimism regarding the Biden administration’s influence on crypto regulations. “A lack of a clear regulatory framework over the last four years has left us in turmoil,” the post acknowledged. The firm believes that, under President Biden, regulations could become less of a “regulation through enforcement” situation and more about fostering innovation.
The Call for Well-Defined Regulations
Ripple’s General Counsel, Stu Alderoty, had some strong feelings about what the next four years could mean for crypto regulation. He posited that the Biden administration recognizes the profound impact that regulation has on both public interest and private innovation. “Intelligent, well-thought-out regulations communicated effectively can help level the playing field and unleash innovation,” Alderoty stated.
Words of Encouragement from Garlinghouse
Garlinghouse didn’t hold back in expressing confidence in Gary Gensler, Biden’s pick for SEC chair. He lauded Gensler as potentially being more receptive to Ripple’s mission, stating, “Congrats to Gary Gensler! We’re ready to work with SEC leadership and chart a path forward for blockchain and innovation in the US.” Gensler’s background suggests he could understand the nuances of crypto better than his predecessors, so there’s that!
Jed McCaleb’s Market Moves
Amidst the legislative chess match, Ripple’s co-founder Jed McCaleb made headlines for resuming his notorious sell-off of XRP. Recently, he sold 28.6 million XRP, worth approximately $8.5 million. After a quiet 25 days post-lawsuit announcement, McCaleb returned to the market, still holding a staggering 3.25 billion XRP (worth around $970 million), enough to fund his own island, if you will. His previous sales totaled 1.2 billion XRP for a jaw-dropping $400 million last year.
The Looming SEC Lawsuit
The SEC’s allegations paint Ripple’s XRP tokens as unregistered securities. The next step in this drama? A virtual pretrial conference scheduled for February 22. As this case unfolds, perhaps we’ll finally see how the new regulatory landscape could shape the blockchain industry.
Market Reactions
The anxieties surrounding the SEC lawsuit seem to be affecting XRP’s price, currently hovering at $0.30, with a mild increase of 2.9% in the last 24 hours. As the legal battle continues, investors and enthusiasts alike will be watching closely to see if Ripple can navigate these choppy waters successfully.
