Ripple Labs and XRP suffered significantly when the Securities and Exchange Commission (SEC) announced that it would investigate the company for possible securities law violations. While the ghost of the lawsuit has been following both entities since then, it appears that some progress has been made - and things could be looking up for Ripple once more.
The crypto market is currently shaky, with just about every top name suffering significant pullbacks time and again. However, April was an impressive month for XRP in particular.
A Big April for XRP
XRP began April with a significant rally, jumping by almost 100 percent following a rotation of traders from Bitcoin. With the leading cryptocurrency being seen as too expensive, traders flocked into options like BNB and XRP to make gains instead. Thus, the latter managed to notch up to a 30 percent gain across the board.
All in all, the asset was finally able to cross the $1 mark, and it rallied up to a high of $1.96. It wasn’t able to hit the $2 mark, but there is no doubt that there is a great deal of anticipation from many traders and believers who believe that the asset could be turning a corner.
Another significant point to note is that Ripple Labs has secured several wins in its case with the SEC. According to a report from Law360, the company won access to internal SEC discussions that concerned cryptocurrencies in general. The court also denied the SEC’s request to receive financial records of two Ripple executives - including CEO Brad Garlinghouse.
Several of Ripple’s executives already criticized the SEC’s approach to regulation. David Schwartz, the company’s Chief Technology Officer, told Cointelegraph:
“The United States is one of the few countries where there's this very palpable risk that the regulators will turn to you and say, 'That thing that you were doing for five years, in public and complete light of day? Well, you should have known it was illegal all along.'"
With confidence surging, investors will now be looking at XRP like an attractive commodity. The asset began May trading down, but so did pretty much every other major cryptocurrency. So, there seems to be a bright future for XRP itself.
Ripple Getting Ready to Move On
Now that Ripple seems to be making progress with the SEC case, the company is moving along pretty well.
Last month, Yoshitaka Kitao, CEO of Japanese financial giant SBI Group, explained that Ripple could be looking to go public once the SEC battle is over. SBI is one of Ripple’s most significant foreign partners, and Kitao has never shied from speaking about the company’s trajectory. In an earnings call, he said:
“After the current lawsuit, Ripple will go public. The current CEO wants to do that. Chris wants to do that.”
Kitao added that SBI’s investment in Ripple will eventually pay off when the company goes public. As he explained, SBI is Ripple’s largest outside shareholder. Kitao even added that R3 - a blockchain consortium - could go public soon as well:
“We have been investing in fintech companies and we adopt that technology in our group and also we spread that technology across the industry. That is SBI Group’s basic strategy,” Kitao stated.”
Garlinghouse himself already hinted at an Initial Public Offering (IPO) last year. Speaking at the World Economic Forum, the CEO predicted several crypto IPOs in the coming years.
Since then, Coinbase has gone public. No other company has done that yet, so Ripple Labs has some room to get this done.
New Hires Spark Fresh Energy
The company already made some moves to push forward. This month, Ripple announced that Rosa Gumataotao Rios, a former treasurer of the United States, will join its board of directors. Rios, who served as a treasurer under President Barack Obama between 2009 and 2016, will be the newest member of Ripple’s leadership team.
Garlinghouse explained that her experience in private and public sector operations will help move the company in the right direction.
Ripple also announced that Kristin Campbell, a former executive at FinTech company GreenDot, will join as its Chief Financial Officer (CFO). Campbell has reiterated her commitment to improving financial inclusiveness using crypto and blockchain, adding that she will also work closely to provide optimal value for the company and its shareholders.
With new hires and a fresh focus for the future, there is little doubt that the momentum appears to be in Ripple’s favor at the moment. Everyone seems to believe in XRP’s potential once more, and there is hope for even bigger gains across the board.