XRP Price Climbs 10% amid Regulatory and Use-Case Tailwinds

Highlights

• The XRP price has climbed 10% higher in the past week. 
• XRP remains below the psychologically sensitive $0.50 level. 
• XRP has a couple of tailwinds, including momentum further swinging in Ripple’s direction in the battle with the U.S. SEC. 

The XRP price is up 10% in the last seven days, buoying the price to $0.46. While it’s a breath of fresh air for the XRP army, the price still hovers below the psychologically important $0,50 level, which eludes the No. 6 cryptocurrency so far in May. 

Ripple’s CBDC Platform 

A couple of catalysts seem to be fueling the XRP price higher lately. Among them, XRP-issuer Ripple is continuing with business as usual despite its prolonged legal battle with the U.S. SEC. 

The blockchain-based cross-border payments company has introduced a platform that will make it easier for governments to build central bank digital currencies (CBDCs). The Ripple CBDC Platform is designed to meet growing demand from nations that are looking to jump on the digital asset bandwagon.

Ripple is using its trademark blockchain-based XRP Ledger technology to support the creation, issuance and distribution of CBDCs, including the use of digital wallets for corporate and individual end users. 

Brad Garlinghouse on U.S. Regulation 

While Ripple remains mired in a court battle with U.S. regulators, CEO Brad Garlinghouse is speaking out. Garlinghouse believes that a rising number of cryptocurrency companies will relocate abroad due to what he described as “confusing” regulations. 

Europe is looking increasingly attractive for crypto-friendly regulation that is taking shape in regions like the U.K. Brian Armstrong, CEO of cryptocurrency exchange Coinbase, already revealed that he was eyeing the U.K. but later backpedaled on any relocation speculation. 

The UAE and Singapore are also more attractive jurisdictions for blockchain innovation.  Garlinghouse emphasized that Ripple is “focused on growth opportunities outside the U.S.” 

Court Battle Update

Ripple also received some tailwinds after a courtroom setback suffered by the SEC. It involved internal documents that the regulator sought to have sealed. The documents involve the testimony of a former SEC director that could be damaging to the SEC’s case on whether cryptocurrencies meet the definition of securities.  

Ex-SEC director William Hinman  previously stated that the sale of ether, the second-biggest cryptocurrencies, didn’t constitute securities transactions. This is a positive for Ripple, which is accused of selling XRP as unregistered securities.