Ripple (XRP) has shown a 1.1% increase over the past 24 hours, but recently lost 0.5% of its value, dropping to $0.52. This ordinary chart reflects the overall situation where Bitcoin struggles to overcome the $64,000 resistance and Ethereum prices fluctuate between $3,100 support and $3,200 resistance.
Developments in XRP and the SEC Case
Statements from Ripple, the issuer of XRP, reveal significant changes in its network known for blockchain-based cross-border payments. While the lawsuit between Ripple and the SEC progresses without much promise of gain for XRP, the blockchain initiative is making structural changes to its On-Demand Liquidity (ODL) service, especially for its customers in the U.S.
According to a recent court filing, Ripple is adopting the largest stablecoin, USDT, for use by its American clients. Ripple faces challenges with ODL clients, but a subsidiary based in Singapore is now responsible for these ODL customers.
The move is believed to be necessary due to a court decision last year that accepted corporate XRP sales as securities. Consequently, Ripple could face a proposed $2 billion fine for violating U.S. securities laws.
Expert Opinion on Ripple’s Strategy
Ripple has moved away from XRP sales in the U.S. but continues similar sales indirectly with firms outside the U.S. U.S.-based firms are switching to using USDT, bringing along exchange transactions. According to lawyer and cryptocurrency enthusiast Bill Morgan, this move is concerning for XRP. He stated:
Those who say it doesn’t matter because XRP itself is clear are underestimating the negative consequences of a broad permanent injunction that stops Ripple’s ODL or the use of XRP in ODL for the XRP and XRPL ecosystem.
XRP holders appear anxious ahead of the court decision in the ongoing lawsuit. Some investors are also skeptical about the effectiveness of Ripple’s potential move from the U.S., indicating they are ready to leave.
