Experts assume that XRP's rise is the result of speculation over the SEC's protracted battle over regulation.
XRP is appreciating in value while other currencies are depreciating. The coin is presently selling for $0.54 and has increased by around 21.6% over the last 7 days. The company's outstanding rise has been aided by investor confidence in the company's capacity to prevail in a trial with the US Securities and Exchange Commission.
The SEC believes that Ripple Labs and its two co-founders deceived investors by amassing $1.3 billion in unregistered stocks since 2013, and that it is taking unprecedented action against the cryptocurrency industry.
XRP's climb is "based on hope," according to associate counsel at New York law firm Katten Muchin Rosenman LLP Ripple Labs' payment of $700,000 to the Department of Justice in 2015 to end a criminal investigation. As part of this agreement, Ripple Labs has formally acknowledged that XRP is a virtual currency. He claimed that investors are merely betting that if Ripple Labs wins, it will spell the end of the cryptocurrency industry (this is not a security).
The SEC has launched its most aggressive campaign against the cryptocurrency industry in years under the head of Gary Gensler. The head of the authority intends to impose strict regulations on all coins and tokens that, in his opinion, are unregistered stocks, as well as the businesses that trade them.
The SEC investigated and fined many American cryptocurrency exchanges this year alone, including Kraken, Genesis, and Gemini. The government issued a Wells Notice to Coinbase, the biggest cryptocurrency exchange in America, last week, signaling that the San Francisco-based exchange will soon face action.
