• Ripple is currently in a court battle with the SEC regarding the classification of XRP.
• Whale activity on the market is putting downward pressure on XRP.
• Brad Garlinghouse is optimistic that 2023 will bring regulatory clarity for crypto in the US.
The crypto space has been abuzz following an ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) regarding the classification of XRP. In December 2020, the SEC filed a complaint against Ripple, alleging that XRP was a security and not a currency. This has caused the crypto to plummet, with XRP currently trading at $0.3435, according to Coingecko.
Adding to the downward pressure on the crypto is the significant whale activity on the market. According to Whale Alert, whales have been moving hundreds of millions worth of XRP to the open market with the biggest transfer worth $92 million.
However, Ripple’s CEO, Brad Garlinghouse, is still very optimistic about the crypto’s future. In a recent tweet, he expressed his belief that 2023 will bring regulatory clarity for crypto in the US. This is because the SEC failed to satisfy the three elements of the Howey Test which determines whether the asset is a security or not.
It remains to be seen if the crypto market will be able to break out of its current sideways trend, but it’s clear that Ripple’s legal battle with the SEC is a key factor that will have an impact on XRP’s future. With the 118th Congress now in session, Brad Garlinghouse is hopeful that 2023 will bring clarity and certainty to the crypto market. Only time will tell if this optimism will be rewarded.