XRP has failed to meet investor expectations and this underperformance has frustrated many investors. Unlike other cryptocurrencies that surge during market bull runs, XRP often remains stagnant. This is concerning given recent positive developments.
Ripple partnered with Apple for the revolutionary Tap to Pay technology. The firm also recently announced the name of its stablecoin. Despite the numerous positive developments in the ecosystem, XRP’s price has remained in consolidation.
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Reason for XRP’s Underperformance
In a recent post on X, former Ripple director Sean McBride shed light on the potential reason behind XRP’s muted price action. He believes XRP cannot grow due to the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
McBride believes the SEC lawsuit is the primary factor hindering XRP’s price potential. Until a final ruling is issued by Judge Analisa Torres of the U.S. District Court, significant price movements for XRP are unlikely. According to McBride, anyone who believes anything different will happen is delusional.
This sentiment is echoed by market analysts who point to the initial surge in XRP’s price following the ruling from July 2023 that XRP itself was not a security and the non-institutional XRP sales were not securities offerings. This ruling caused XRP’s price to jump to $0.93.
However, the price has since fallen by nearly half, currently trading around $0.48. This decline, despite a generally positive cryptocurrency market, highlights the ongoing impact of the legal case.
Resolution Could Spark Institutional Adoption
McBride believes a favorable ruling for Ripple could be a turning point for XRP. He believes that regulatory uncertainty will be cleared up once the lawsuit ends. He believes this will pave the way for U.S. institutions to confidently explore partnerships with Ripple, which could significantly increase demand for XRP.
However, he believes the next big change will be proper legislation from the U.S. government. He pointed out Donald Trump’s pro-crypto stance as a potential path to achieving proper crypto legislation. However, this hinges on Trump winning the U.S. election in November.
Further bolstering this argument is Ripple’s continued pursuit of over 30 Money Transmitter Licenses (MTLs) across the United States. These licenses are crucial for operating within the U.S. financial system. McBride emphasized that Ripple is not acquiring them for nothing.
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Read Also: Former Ripple Director Hints at “Big News” for XRP
Appeal Won’t Derail Progress
While the SEC could potentially appeal a favorable ruling for Ripple, McBride believes this wouldn’t necessarily derail the anticipated advancements in the U.S. market. While a prominent attorney has predicted that both parties will appeal, McBride believes the appeal will not stop XRP’s positive momentum unless the court rules against Ripple.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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