Ripple CEO Admits Major Error: Will XRP Price Crash?
Qadir AK24 Oct 20242 min read
Ripple CEO Brad Garlinghouse recently admitted that the company should have engaged with U.S. regulators much earlier. Speaking at DC Fintech Week, he stressed that Ripple is now working to make up for lost time after facing significant legal challenges from the U.S. Securities and Exchange Commission (SEC).
The SEC lawsuit against Ripple claims that its XRP token was sold as an unregistered security. Although Ripple achieved a partial victory when a judge ruled that XRP sales to retail investors do not count as securities, the SEC is appealing this decision. This ongoing legal fight creates uncertainty for both Ripple and its investors.
A Call for Better Communication
Garlinghouse expressed regret about Ripple’s past approach, highlighting the need for open communication with regulators. He criticized SEC Chair Gary Gensler for his strict regulatory stance, describing it as a “reign of terror” against the crypto industry. He also pointed out that negative incidents, such as those involving Sam Bankman-Fried, have harmed the reputation of the entire cryptocurrency space.
Increased Political Engagement
In response to the tough regulatory environment, Ripple has stepped up its political involvement. Garlinghouse has made more frequent trips to Washington, D.C., to discuss cryptocurrency regulation. Additionally, Ripple has invested nearly $50 million in political action committees (PACs) that support candidates from both major parties.
Notably, co-founder Chris Larsen recently donated $10 million to a PAC supporting Democratic presidential nominee Kamala Harris. While this was meant to be a good-faith effort, it has sparked controversy within the XRP community, with many believing it could jeopardize the future of XRP and XRP ETFs in the U.S. This move may also attract renewed SEC scrutiny toward XRP.
XRP Current Scenario
As Halloween approaches, XRP has hit a rough patch, dropping 3.41% in just 24 hours, with trading volumes reaching $1.21 billion. The price fell from a high of $0.548 to a low of $0.528 amid a broader market sell-off. Despite these challenges, optimism remains within the XRP community, with 85% of voters expecting a price increase. Historically, October has been a bullish month for cryptocurrencies.
A Glimmer of Hope for Investors
According to AI predictions, XRP could rise to about $0.6647 by October 31, though this figure is still far from its all-time high of $3.84, reached in 2018. The ongoing legal issues with the SEC continue to hinder its progress.
Will Ripple’s political donations ultimately harm its cause? Tell us what you think.
