Is the SEC Playing a Game of Cat and Mouse with XRP? 🐱🐭

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The cryptocurrency market is abuzz with the latest antics of the U.S. Securities and Exchange Commission (SEC), which has once again left the crypto community in a delightful state of confusion. 🤔

While some believe the SEC’s acknowledgment of XRP-related Exchange Traded Funds (ETFs) is a clear signal that XRP is being treated as a commodity, the SEC has not officially confirmed this. Oh, the suspense! 🎭

On 12th February 2025, the US SEC acknowledged multiple applications for ETFs based on various cryptocurrencies, including XRP (from Grayscale and 21Shares). This acknowledgment places XRP on par with Bitcoin and Ethereum, which are widely regarded as commodities. However, the SEC has not explicitly stated whether XRP itself is a commodity. How delightfully ambiguous! 🤭

Eleanor Terrett, a crypto journalist, noted in an X post that the US SEC is currently reviewing several digital asset ETFs, including those tied to XRP, Solana (SOL), and Dogecoin (DOGE). She stated, “They have acknowledged that issuers are applying for a product that classifies XRP as a commodity asset within a securities wrapper.” While this suggests a shift in regulatory stance, the SEC has yet to provide final clarity. Earlier this week, legal expert Jeremy Hogan clarified that the Ripple vs SEC lawsuit is very unlikely to affect the XRP ETF approval procedure. Oh, the intrigue! 🕵️‍♂️

Ripple’s Lawsuit and Court Ruling on XRP

Ripple Labs has been embroiled in a long-standing legal battle with the SEC over whether XRP should be classified as a security. In a key ruling, a U.S. judge determined that XRP was not a security in secondary market transactions. However, the court also ruled that Ripple’s direct institutional sales of XRP were unregistered securities offerings. How very scandalous! 🙀

The SEC has paused further litigation as its crypto task force continues to evaluate the regulatory framework for digital assets. Legal experts suggest that an appeal remains a possibility, which could extend the uncertainty around XRP’s classification for years. Some analysts argue that if different courts reach varying conclusions, the case may eventually be reviewed by the U.S. Supreme Court. The plot thickens! 📜

XRP Market Reaction and Trading Activity

Following the SEC’s acknowledgment of XRP ETFs, XRP’s trading volume surged by 30% within the first hour of the announcement. On-chain data revealed a 29% increase in active addresses interacting with the XRP ledger. Major exchanges, including Binance and Coinbase, recorded heightened trading activity. The market, it seems, is as excited as a cat in a room full of yarn. 🐱🧵

XRP’s price also experienced a sharp increase, reaching $2.84 on 15th February 2025, a 22% rise over five consecutive trading days. Analysts suggest that if XRP maintains momentum and surpasses the $2.80 resistance level, it could move toward $3.00 or higher. However, if selling pressure increases, the price may consolidate between $2.60 and $2.80. However, should the bull run persist and breach the $3.40 resistance, according to analysts Egrag crypto, XRP price may test new all-time highs of $15 to $17. The sky’s the limit, or so they say! 🚀

Analysts suggest that if XRP maintains momentum and surpasses the $2.80 resistance level, it could move toward $3.00 or higher. However, if selling pressure increases, the price may consolidate between $2.60 and $2.80. However, should the bull run persists and breaches the $3.40 resistance, according to analysts Egrag crypto, XRP price may tests new all time highs of $15 to $17. The sky’s the limit, or so they say! 🚀

Crypto Community Awaits Regulatory Certainty

The ongoing debate over XRP’s classification has led to mixed reactions within the crypto community. Some believe that the SEC’s acknowledgment of XRP ETFs suggests a step toward recognizing it as a commodity, while others argue that the lack of explicit confirmation leaves room for further regulatory scrutiny. The crypto community, it seems, is a house divided. 🏠💔

Subsequently, the US SEC’s approach to XRP may also impact ongoing cases against major crypto exchanges, such as Binance and Coinbase, whose cases have already been paused by the crypto taskforce for 60 and 28 days respectively. These exchanges have faced regulatory challenges for allegedly offering unregistered securities. If XRP is formally classified as a commodity, it could influence how similar assets are regulated in the future and ultimately push XRP price above $110. The future, it seems, is as uncertain as a weather forecast in London. 🌦️

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2025-02-16 06:32