XRP appears to be stagnating as the price of XRP fluctuates around $0.63. Will the bullish momentum return?
Ripple (XRP) started the week with a promising surge, rising from $0.62 to $0.65. However, the cryptocurrency struggled to maintain its bullish momentum, falling 5% and falling below $0.62 just after Christmas. At the time of writing, XRP is trading around $0.63 and has seen some recovery over the past 24 hours.
XRP Bulls vs Bears
In December 2023, Ripple reportedly transferred 240 million XRP from escrow accounts, leaving more than 96 million XRP in primary spending wallets. This equates to approximately $60 million at press time. Cryptocurrency observers were worried that there would be a sell-off by the end of 2023. In contrast, some analysts have suggested that the remaining XRP may not be released immediately.
According to Ali Martinez, BeInCrypto’s Global News Director, whales have amassed significant amounts of XRP worth millions of dollars over the past week. This buying activity, totaling $223 million, suggests whales may be positioning themselves for a potential rebound.
XRP faces uncertainty due to political and regulatory factors.
Ripple lawyer John E. Deaton commented on X’s post highlighting two articles from The New York Times. The first report, in 1995, addressed concerns that government surveillance was violating civil liberties and privacy. Meanwhile, a 2023 article discussed the need for increased surveillance measures.
John questioned the purpose of Senator Elizabeth Warren’s bill, suggesting the possibility of the Federal Reserve working with major banks to launch a CBDC. He said Elizabeth’s re-election campaign could aim to shape and dominate the anti-cryptocurrency discourse.
in other words,
“All of this is being coordinated by Senator Warren and her anti-cryptocurrency army, co-chaired by Jamie Dimon. They want to introduce a CBDC managed by the Federal Reserve in conjunction with the big banks. “She is using her re-election campaign as a way to create and control the anti-crypto narrative.”
John further commented on the US presidential election and the potential for the bill to become law. He said the dismissal of Warren’s bill based solely on the current composition of the House should be modified. He emphasized that a shift in political dynamics in 2024 would likely pave the way for the bill to pass if Democrats regain control of the House.
More legal nonsense from America
Deaton acknowledges the possibility of Democrats winning the presidential election outright, but remains skeptical about passage of the Warren bill in 2024.
Ripple’s lawyers went on to discuss the potential impact of the upcoming 2024 U.S. election on the future of cryptocurrency regulation in the United States. John presented two scenarios depending on the outcome of the election. A Democratic victory could lead to passage of Senator Warren’s anti-cryptocurrency bill, which would likely limit the digital asset space.
On the other hand, a landslide Republican defeat would be beneficial for the US digital asset sector.
The Warren Bill aims to severely limit cryptocurrencies, while the RFI Act aims to support innovation while protecting investors. The RFI Act also seeks to reduce the SEC’s influence on cryptocurrency regulation by giving the Commodity Futures Trading Commission (CFTC) more power.
This is potentially positive for cryptocurrencies in the U.S., as the CFTC is generally considered more cryptocurrency-friendly than the SEC.
Ripple CLO Discloses Proposal to Settle SEC Lawsuit
Stuart Alderoty, Ripple’s Chief Legal Officer, recently revealed details of the US financial watchdog’s 2020 settlement proposal. The SEC proposed publicly declaring XRP a security before starting litigation, giving market participants a short period of time to comply. classification.
Ripple rejected this proposal for two main reasons. First, Ripple firmly believes that XRP does not belong to the category of securities. Second, the SEC must provide a comprehensive regulatory framework for cryptocurrency compliance.
Despite differing views from past SEC representatives, Ripple remains steadfast in its mission to establish that XRP is not a security. Of course, XRP can be used anywhere. A U.S.-centric focus may therefore appear short-sighted over time.