XRP has been one of the best-performing major coins in July,mainly thanks to a whole lot of headlines regarding one interesting judgeruling in the Southern District of New York - which we will discuss in today’sblog post. We at Voltcoins are aware that events in the crypto sphere can leadto price volatility and that’s why we make an effort so that you can understandthe long-term implications of these events.
Cryptocurrency regulation has been heavily influencingcrypto prices for several years now, causing uncertainty for those who exchangecryptocurrencies on a regular basis. That’s why this court case is big news.Let’s dive into the story.
Judge ruling sparks enthusiasm
Ripple, the company behind XRP, got a partial win againstthe United States Securities and Exchange Commision (SEC) in court, as a judgeruled that XRP is not a security in some cases, weakening the SEC’s power tolimit its exchange. The market viewed that as an incentive to buy the coin,which led to an immediate 71% jump in price.
In an environment led by crowd emotions, such a feedbackloop shouldn’t come as a surprise. Additionally, we need to highlight that whenthe SEC announced it will sue Ripple, the coin tanked - which means it is onlynatural that now prices are on the rise again.
This event shows once again that crypto regulation is ahighly sensitive topic, one that has the potential to shape the industry in thefuture. If regulators overtighten requirements, that will reduce scams, but atthe same time, make it difficult for legit companies to operate.
Could this impact how you exchangecryptocurrencies?
While the market treated the news with enthusiasm, itdoesn’t have major implications for people who exchange cryptocurrencies, atleast for the time being. Regulation in the crypto space will be hard to settleand unify, mainly because there are different views among different nationsworldwide on the topic.
The United States is still the global leader when it comesto financial markets, and that is why crypto market participants put such agreat emphasis on what happens there. The cryptocurrency-friendly media labeledthe win as great news for the industry, but in reality, a lot of things stillneed to be done in order for it to really advance.
Having said all of that, remember that you have plenty ofsecure and transparent options when you want to exchange cryptocurrencies.Voltcoins is a licensed entity, and we are able to provide virtual currencyservice for a wide audience thanks to that.
Is light at the end of the tunnelfor crypto regulation?
Everytime a business wins a case against a major regulator,it is an important step forward for the whole industry, and things are notdifferent when it comes to crypto. Over the last couple of years, the SEC hastaken the spotlight in terms of clamping down on fraudulent crypto companiesand this is actually the first time when it has been proven wrong.
All in all, we don’t think crypto buyers and sellers shouldbe overly enthusiastic about this news. as we don’t see it affecting the way weexchange cryptocurrencies too much. The market will shift its attention to thenext big news story sooner or later.