A July 13 court judgment in Ripple’s legal dispute with the SEC revealed that XRP may not always be a security, a suggestion that has caused quite a stir in the industry.
Stu Alderoty, the Chief Legal Officer for Ripple Labs, expressed confidence that banks and financial institutions based in the United States may choose to use XRP for cross-border transactions in the wake of a recent court decision stating that XRP is not necessarily a security. This potential development occurs as Ripple and the SEC of the United States continue their legal dispute.
Alderoty expressed his optimism that the court ruling would open the door for financial institutions to consider using XRP for their needs relating to cross-border payments in an interview with CNBC on July 17.
He underlined the significance of solving actual issues that firms confront, like the significant costs involved in transferring wealth across borders. Alderoty expressed his expectation that this quarter would result in several interactions with customers in the United States, some of which would ideally result in genuine business.
Revitalizing Partnerships: Ripple and Banks
The decision on XRP’s classification as a security has already had a big impact on the cryptocurrency industry. After a break of more than two years, a number of U.S. exchanges have either resumed XRP trading or have indicated an interest in doing so.
Additionally, the judgment might revive bank and Ripple collaborations that had been stifled by the SEC litigation. Notably, American Express and Ripple began a relationship in 2017 while Bank of America expressed interest in the blockchain company in 2019.
Price Surge and Market Capitalization
Since the court decision, XRP’s value has increased significantly; at the time of publication, it was trading at about $0.74. Due to this increase of more than 50%, the token has risen to the position of fourth-largest cryptocurrency by market capitalization. Investor interest and market enthusiasm have clearly been rekindled by the restored confidence in XRP’s standing and its potential utility for cross-border transactions.
Related: Why is XRP price bullish today?
The court’s decision on XRP has already gained considerable traction as Ripple’s legal dispute with the SEC develops, with potential repercussions for the future of cross-border payments and alliances between Ripple and financial institutions. The changing environment offers a chance for creativity and teamwork that could transform the world financial system.