Ripple’s legal battle with the SEC severely damaged XRP’s adoption, partnerships, and potential for growth.
Key Points
- XRP’s price dropped to pre-SEC lawsuit levels, raising concerns about its adoption and development.
- The SEC accused Ripple of selling unregistered securities through XRP, causing damage despite a partial court victory.
- The lawsuit led to setbacks like XRP’s delisting from Coinbase, affecting adoption and partnerships.
- Ripple’s potential collaborations, like with Coinbase and MoneyGram, were derailed, impacting XRP’s growth and reputation.
In a recent turn of events, the price of XRP, the digital asset associated with Ripple, plummeted to its pre-SEC lawsuit levels.
Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has raised concerns about the long-term impact on XRP’s adoption and development.
Experts and XRP holders are now discussing the damage caused by the lawsuit and the potential opportunities lost.
You could NEVER underestimate the damage the SEC’s lawsuit has caused – NOT ONLY AGAINST RIPPLE – BUT #XRP. THREE YEARS OF ADOPTION – that’s what it’s caused.
Just how long is 3 yrs – in crypto years?
People seem to forget how much Coinbase promoted #XRP before the lawsuit.… https://t.co/1fZ3r8WCSd pic.twitter.com/GLu4kFUU38
— John E Deaton (@JohnEDeaton1) August 22, 2023
The Immeasurable Damage To XRP
The SEC filed a complaint against Ripple and its top executives, accusing them of selling unregistered securities in the form of XRP.
However, in July 2023, the U.S. District Court proclaimed that the sale of XRP did not constitute investment contracts, providing a partial victory for Ripple. Despite this ruling, the damage to XRP had already been done.
According to John E. Deaton, an attorney representing XRP holders, the SEC lawsuit has cost XRP three crucial years of adoption.
The lawsuit led to setbacks such as delisting from platforms like Coinbase, which was once a strong proponent of XRP.
Deaton highlighted Coinbase’s due diligence before listing XRP and how the SEC had praised Coinbase for its crypto asset framework, which deemed XRP as not a security. Yet, the SEC’s action against Ripple disregarded these factors.
Would Coinbase Have Invested In Ripple?
Coinbase recently announced its expansion of the USDC stablecoin network and its minority stake acquisition in Circle, a stablecoin operator.
This news prompted speculation about Coinbase’s potential investment in Ripple if the SEC lawsuit had not occurred.
Ripple and XRP were on the brink of significant adoption in the cross-border payment industry, and Coinbase’s participation could have taken a different course.
Though Coinbase relisted XRP after the court ruling, Ripple’s collaboration with MoneyGram did not continue.
Instead, MoneyGram formed a new partnership with Stellar Development Foundation (SDF) to utilize the USD Coin (USDC) stablecoin. The Stellar Foundation also became a minority investor in MoneyGram, diverting opportunities from Ripple and XRP.
Concluding Thoughts
Ripple’s legal battle with the SEC has caused substantial setbacks for XRP’s adoption and development.
The lawsuit resulted in XRP losing three essential years of progress and partnerships. Coinbase, which was once a strong advocate for XRP, had to delist the token due to the lawsuit.
The potential opportunities for investment and adoption from Coinbase and other institutions have been significantly impacted.
As Ripple continues to navigate the legal landscape, XRP holders and industry experts are left contemplating the missed opportunities and the road to recovery for XRP’s reputation and adoption.
