This is What’s Holding XRP’s Price Back According to Former Lawyer

Former lawyer and crypto commentator Preston Byrne recently discussed the factors that may be holding back the price of XRP. In his analysis, Byrne pointed to the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) as a major contributor to the lackluster performance of XRP. He also cited concerns around XRP’s centralization and the potential for regulatory crackdowns as additional barriers to widespread adoption and higher prices. Despite these challenges, however, Byrne remains optimistic about the future of XRP and believes that it has the potential to become a widely used currency for cross-border payments.

The Obstacle Preventing XRP’s Price from Surging: SEC’s Claim on XRP as Security

XRP, one of the most popular cryptocurrencies, has been in a legal battle with the SEC since 2020. The watchdog has accused Ripple, the entity that issues the coin, of selling assets worth more than $1 billion in 2013 through an unregistered security offering to investors. Despite Ripple’s repeated claims that XRP should be viewed as a commodity, the SEC has alleged that the token is a security.

The legal battle’s outcome is uncertain, but according to financial expert Fredo Ayala, up to 5 million people are depending on the lawsuit between Ripple and the SEC. They have invested in XRP and are eagerly anticipating a possible price expansion.

Scott Chamberlain, a former US lawyer and co-founder of EvernodeXRPL, believes that the SEC’s claim that XRP is a security is the main obstacle that is preventing its price from surging. He opined on Twitter that if the SEC had alleged that Ripple sold XRP as part of an Investment Contract, there would be no threat, no price suppression, and no case, and the matter would have been settled long ago.

The argument for XRP being a commodity stems from the fact that it’s a raw good that trades in commerce, and one XRP is equivalent to every other XRP. Ripple’s Chief Technology Officer, David Schwartz explained that no part of XRP’s value comes from anyone else’s legal obligations to XRP holders. The only digital asset that the SEC is willing to classify as a commodity is bitcoin, according to Gary Gensler, Chairman of the SEC.

Despite the legal uncertainties surrounding XRP, its valuation has seen significant growth recently. It currently trades at approximately $0.51, a 34% increase compared to the figures of 30 days ago.

In conclusion, the SEC’s claim that XRP is a security remains the primary obstacle that is preventing the token’s price from surging. Whether XRP will be viewed as a commodity or a security will ultimately depend on the legal outcome of the ongoing lawsuit between Ripple and the SEC.

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