Hugo Philion, the co-founder of Flare Network, has shed light on the significant impact of the prolonged legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) regarding the security status of XRP. Philion asserts that this lawsuit has hampered Ripple’s ability to focus on product development, resulting in a delay of at least two and a half years.
XRP Lawsuit: Impediment to Ripple Growth and Development
In a recent tweet, Philion highlighted the daunting legal uncertainty surrounding XRP as a major impediment to Ripple’s progress.
Although Ripple has gained some clarity on the matter, the time and resources dedicated to addressing the regulatory challenge have diverted the company’s attention from advancing its cross-border payment solutions. According to Philion, this delay has allowed rival players, particularly stablecoin issuers, to emerge within the market as viable alternatives to Ripple.
I have always assumed that XRP would sell off hard after the case ended. This is because the primary (but not only) usecase for XRP is (and has always been) cross border transactions and the primary force behind developing this market is still Ripple. Since late 2020, Ripple have…
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
Read Also: Flare Founder Highlights How XRP Lawsuit Impedes Ripple Products Development
Stablecoins have experienced a surge in popularity due to their minimal regulatory uncertainty and ease of integration with established financial institutions. Their success in expanding the cross-border payments market has cast a shadow over Ripple’s ambitions of market supremacy.
Despite the setbacks caused by the legal battle and the rise of stablecoins, Philion remains optimistic about Ripple’s future in cross-border payments, especially in underserved corridors of the traditional financial system. He believes that XRP’s unique value proposition, facilitating quick and cost-effective cross-border transactions, will eventually lead to success.
Nevertheless, Philion acknowledges that progress may be slower than initially anticipated, as the crypto industry has faced increasing skepticism. He points to recent controversies involving prominent figures like Sam Bankman-Fried and the collapse of the FTX exchange, which somewhat dragged the entire industry backward.
Read Also: Coinbase Cites Ripple and XRP Ruling in a Bid to Dismiss SEC Lawsuit: Details
Expanding the Utility of XRP
While Ripple has primarily focused on cross-border payments, Philion recognizes the efforts of various stakeholders in exploring new use cases for XRP and the XRP Ledger (XRPL). He expresses optimism that these innovative projects have the potential to diversify the utility of XRP.
However, Philion tempers expectations by emphasizing that these endeavors will require time to come to fruition. Research, development, and market adoption pose challenges that must be overcome before these new use cases and ecosystem advancements can be fully realized.
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