XRP’s price could soon rally following the SEC’s latest move on Ethereum. In a surprising turn of events, the U.S. Securities and Exchange Commission has approved an Ethereum Exchange-Traded Fund, signaling a potential shift in its approach to cryptocurrency regulation. This decision comes on the heels of the SEC’s recent classification of Ethereum (ETH) as a security, significantly dampening market expectations for Ether ETFs’ approval.
Investors Questioning SEC’s Motives
The sudden approval has left market participants and industry observers questioning the consistency and motives behind the SEC’s regulatory actions. Many view this move as indicative of the SEC’s ad hoc decision-making process, which some argue borders on malice and undermines the rule of law.
Blockchain technology company Consensys recently filed a lawsuit against the SEC and expressed mixed feelings about the decision. They acknowledged the approval of ETH Spot ETFs as a positive step but criticized the SEC’s seemingly last-minute decision as another example of its inconsistent approach to digital assets.
On today’s SEC ruling:
While Consensys welcomes today’s decision to approve ETH Spot ETFs as a step in the right direction, this seemingly last minute approval is yet another example of the SEC’s troublesome ad hoc approach to digital assets. No other industry, market, or…
— Consensys (@Consensys) May 23, 2024
Consensys emphasized that no other industry faces such deliberate regulatory challenges, which they believe is unfair to market participants and stifles innovation.
Frustrating The Industry
The approval of the Ethereum ETF suggests that the SEC now views ETH as a commodity rather than a security, a position contrary to its recent actions. This inconsistency has frustrated industry players and raised questions about the SEC’s regulatory clarity and intent.
I believe the SEC is in deep trouble with some of its crypto cases in light of its determination that $ETH is a commodity.
The SEC argued repeatedly at the hearing on @Coinbase‘s motion to dismiss that crypto tokens that operate within an “ecosystem” are securities.
I believe…
— MetaLawMan (@MetaLawMan) May 24, 2024
Consensys and others in the industry intend to advocate for definitive regulatory clarity. They have noted the significant bipartisan efforts in Congress to provide clear and sensible regulation.
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Ethereum ETF Could be a Big Win for XRP
The implications of this decision extend beyond Ethereum. Ripple’s XRP, embroiled in a legal battle with the SEC since 2020, could be a significant beneficiary.
Today Uniswap responded to the SEC Wells Notice.
They used the Ripple vs SEC case in their response in multiple sections 🤝
The XRP Community literally ruined it all for the SEC 🤣 pic.twitter.com/tsZJO82mtI
— Vet 🏴☠️ (@Vet_X0) May 22, 2024
The SEC’s lawsuit against Ripple alleges the company conducted an unregistered securities offering by selling XRP. Given that Ripple’s capital-raising methods were similar to Ethereum’s, the SEC’s shifting stance could undermine its argument that XRP is a security.
Ethereum ETF Could Weaken SEC’s Case
Market analysts believe that the approval of the Ethereum ETF could bolster XRP’s position in its ongoing legal battle. The inconsistency in the SEC’s regulatory approach may complicate sustaining the argument against XRP.
The SEC’s approval of the Ethereum ETF represents a significant moment in the regulatory landscape for cryptocurrencies. While it brings a glimmer of hope for market participants seeking clarity and fairness, it also brings forth the need for a more consistent and transparent regulatory framework.
As of the latest trading data, XRP was priced at $0.5216, down by 1.31% in the last 24 hours. However, the approval of the Ethereum ETF and its potential impact on the XRP case has led to speculation that XRP could experience a rally in the coming days or weeks.
XRP Trading Within Monthly Range as Price Consolidation Continues
Source: TradingView
XRP has been consolidating between the $0.499 support and $0.539 resistance for the past month. However, with the latest move by the SEC to approve an Ethereum ETF, the case against Ripple by the SEC, which has for years held XRP back, could weaken.
If the market perceives the Ethereum ETF as a win for Ripple, then XRP could break the $0.539 resistance in the short term. XRP could quickly rally to its March high of $0.744 if this happens.
However, if the market fails to correlate the Ethereum ETF to the ongoing case by the SEC against Ripple, then XRP will likely continue trading in the broader market’s direction. Currently, that means a continuation of the range-bound trading.
Related: Market Expert’s Prediction: XRP Is Expected to Reach $3.84 High
XRP Likely Headed for a Breakout
As the market continues to price in the Ethereum ETF, there is a rising perception that this could be a win for cryptocurrencies with issues with the SEC. XRP, being the most popular among those cryptocurrencies, could experience a surge in price as the market expects a win Ripple against the SEC, thanks to the SEC’s inconsistencies.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
