- XRP plunged 11% as the SEC appealed a favorable ruling in Ripple’s ongoing legal battle.
- Bitwise’s XRP ETF filing boosts investor optimism amid regulatory uncertainty and price drops.
- Ripple partners with Mercado Bitcoin to enhance cross-border payments in the growing Brazilian market.
The ongoing legal battle between Ripple and the SEC has significantly influenced XRP’s price action. The 2020 lawsuit against Ripple centered around the sale of its XRP tokens without registering them as securities, a claim that Ripple disputed in court. Last year, a court ruling partially cleared XRP of being classified as a security, granting a partial victory to Ripple and the broader cryptocurrency sector.
However, the SEC’s most recent appeal has reintroduced uncertainty into the market. On Wednesday, the agency appealed the ruling, seeking to increase Ripple’s penalty from $125 million. As a result, XRP experienced a sharp decline, falling as much as 11% to $0.51.
Read also: Ripple Lawsuit: SEC Appeal Could Delay Decision Until 2026
This market reaction triggered a wave of long position liquidations in XRP futures, as traders reacted to the growing volatility. Despite briefly recovering to $0.52 , XRP has dropped 20% over the past four trading sessions.
Despite the legal challenges, Bitwise Asset Management’s filing for an ETF investing directly in XRP has provided some hope to investors. The ETF filing, which positions XRP as a potential vehicle for institutional investment, demonstrates growing interest in the token despite its regulatory challenges. Bitwise’s application represents a significant milestone, being the first to directly target XRP investment.
Ripple’s Expansion in Brazil and Latin America
Meanwhile, Ripple continues to grow its global operations. The company collaborated with Mercado Bitcoin, the largest cryptocurrency exchange in Latin America, to improve cross-border payments between Brazil and Portugal.
Read also: Ripple’s 500 Million XRP Escrow Lock Triggers Whale Alert
This partnership, focused initially on institutional clients, highlights Ripple’s growing influence in the region. Brazil, a key market for Ripple, has become a significant player in the global crypto market, ranking among the top 10 countries for crypto adoption.
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