The US Securities and Exchange Commission (SEC) has been locked in a long-standing battle with Ripple over its XRP cryptocurrency, alleging that it was issued in breach of the law. However, with Donald Trump’s incoming administration taking office on January 20, investors are hopeful that regulatory woes may soon disappear.
XRP, which has a market capitalization of over $150 billion, is designed for the Ripple Payments network to standardize transactions between banks using different infrastructure. The token allows for instant and direct settlement without intermediaries, reducing transaction fees and exchange costs.
The SEC’s lawsuit in 2020 argued that XRP should be classified as a financial security, requiring registration and strict rules. However, a judge ruled in August 2024 that XRP might only be a security in specific circumstances, potentially paving the way for Ripple’s punishment to be reduced.
Ripple’s future with the SEC is uncertain, but the nomination of Paul Atkins, a pro-crypto advocate, as the new head of the commission may bring about a more favorable outcome. While this could boost XRP’s value, it’s essential to approach investments with caution.
XRP has already seen significant gains since Trump’s election victory, but its value is still largely speculative. The token has faced significant volatility in the past and may experience further fluctuations. As such, investors should exercise caution before making any investment decisions, even with a pro-crypto US government on the horizon.
Source: https://www.fool.com/investing/2025/01/15/should-you-buy-xrp-ripple-before-jan-20