XRP, a cryptocurrency developed by Ripple Labs, saw its price rise about 12% after the US Securities and Exchange Commission (SEC) withdrew its case against the company on March 19. The decision comes as no surprise, given the Trump administration’s vocal support for the crypto industry.
Ripple has been involved in a closely followed lawsuit with the SEC since December 2020, alleging that it was selling XRP as an unregistered security. However, Ripple defended its actions by arguing that XRP is a commodity, not a security. The back-and-forth between the two parties has resulted in extreme price fluctuations over the past four years.
The CEO of Ripple Labs stated that the SEC’s decision was a positive outcome for the company. While some investors are expecting an announcement from the SEC later this month, the current price action isn’t surprising given the administration’s support for the crypto industry.
Despite the SEC’s decision, XRP’s valuation is still questionable. Its market cap of $139 billion makes it more valuable than Shopify, Boeing, Intel, and CrowdStrike. However, its penetration of the global payments market is low, and a win in the SEC case doesn’t guarantee near-term expansion opportunities.
Investors should exercise caution before investing in XRP. The Motley Fool’s Stock Advisor team has identified 10 best stocks to buy now, and XRP was not one of them. The team recommends investors consider other options, given the current market conditions.
In conclusion, while XRP’s price surge may be a positive sign for the cryptocurrency, its valuation remains uncertain. Investors should carefully evaluate their investment decisions and consider alternative options before making a move.
Source: https://www.nasdaq.com/articles/sec-reportedly-dropping-its-case-against-ripple-xrp-finally-buy-less-3