The Ripple and XRP community continues to criticize the US SEC for its stringent enforcement actions, particularly outside its jurisdiction. The forthcoming US general elections are anticipated to be a pivotal moment for the widespread adoption of cryptocurrency in the country, providing a much-needed respite for XRP holders.
Following a nine-day bearish trend, XRP, supported by Ripple Labs, experienced a recovery on Thursday and Friday. This large-cap altcoin, with a fully diluted valuation of approximately $47.7 billion and a daily trading volume around $732 million, is nearing the peak of its multi-year triangular consolidation.
Given the current optimistic macro outlook for cryptocurrencies, it is reasonable to expect that XRP is on the brink of a significant bullish surge, likely to be initiated by a settlement between Ripple and the US SEC. As previously reported by Crypto News Flash, momentum is building for a settlement plan between the US SEC and Ripple as the end of the current administration approaches.
Notably, the US SEC has requested the presiding judge to impose a fine of approximately $102 million on Ripple for securities law violations. The US SEC maintains that XRP sales on crypto exchanges violate securities laws, despite last year’s ruling suggesting otherwise.
### Ripple Challenges the SEC’s Aggressive Actions
The US SEC, under Chair Gary Gensler, faces accusations of exceeding its authority by enforcing regulations on the crypto industry. Ripple’s Chief Legal Officer, Stuart Alderoty, argues that Gensler has failed the American public by not providing clear regulatory guidelines for cryptocurrency.
Moreover, the court has determined that the US SEC unlawfully exceeded its mandate in regulating the crypto industry and other sectors. For instance, in the case of SEC vs. National Association of Manufacturers, the court found that the SEC, under Gensler’s direction, unlawfully rescinded a rule on proxy advisory firms without following the Administrative Procedure Act.
> Another court slams the SEC, this time for unlawfully rescinding a rule on proxy advisory firms without adhering to the Administrative Procedure Act. The court explains that Gensler personally directed this illegal move.
>
> National Association of Manufacturers v. SEC.
>
> pic.twitter.com/NrXrV4x7OG
>
> — Stuart Alderoty (@s_alderoty)
>
> June 27, 2024
Earlier this month, a California judge dismissed all allegations that Ripple violated federal securities laws. Meanwhile, the New York ruling that XRP is not a security remains in effect, though the issue of institutional sales and large escrow holdings remains contentious.
The US SEC’s recent decision to cease investigations into Ethereum has increased the likelihood of a similar outcome for XRP. However, Ripple’s substantial escrow holdings could negatively impact the final ruling.
### Development Initiatives
The global XRP community is eagerly awaiting a spot ETF filing, following the approval of spot Ether ETFs and the recent application for a Solana ETF. Ripple’s core development team has been diligently working on building the infrastructure necessary for the mass adoption of XRP and its cross-border payment solutions.
Ripple has already introduced the XRPL EVM Sidechain to facilitate seamless web3 development within the Ethereum ecosystem. Additionally, Ripple plans to launch its US dollar-backed stablecoin later this year.
### Future Prospects for XRP
In the midst of the ongoing crypto correction, XRP has been striving to establish a local bottom around 47 cents on the weekly chart. The altcoin has risen by approximately 3 percent over the past two days, trading at around $0.476 on Friday during the New York session.
From a technical perspective, XRP must consistently close above 50 cents in the coming weeks to avoid a decline below 40 cents.
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