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The Year in XRP: ETF Hopes Grow as Regulatory Battle Between Ripple and SEC Continues

Investor confidence in the Ripple ecosystem has risen significantly this year despite the ongoing regulatory battle with the US SEC (Securities and Exchange Commission). Here is why there has been a renewed interest in Ripple and XRP in 2024.

Ripple vs. SEC Battle Expected to End Soon

2024 marks the fourth year of the battle between Ripple and the US SEC. In 2020, the American regulator leveled a $1.2 billion lawsuit against the XRP issuer, accusing the firm of selling unregistered securities.

Although the court ruled last year that the sales of XRP tokens to retail investors didn’t violate securities policies, the saga continued in 2024, with the US SEC filing an appeal protesting against the ruling in October. That month, Ripple filed a cross-appeal. The company’s Chief Legal Officer Stuart Alderoty has expressed optimism that the court would rule in their favor again.

Considering that the SEC is preparing for a pro-crypto Chair next year, Alderoty says there is a chance that the agency may drop its charges against the firm.

XRP ETFs Could Enter the US Market

This year, investors have poured billions of dollars into ETFs (Exchange-traded funds (ETFs) for Bitcoin and Ethereum after receiving approval from the SEC. And now, Ripple boss Brad Garlinghouse believes an XRP ETF is imminent.

Several US asset managers, including Bitwise, 21Shares, and WisdomTree, have already filed for such an ETF in an attempt to give investors exposure to the XRP ecosystem without holding the token.

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Analysts say if XRP ETFs replicate the success of Bitcoin ETFs, then XRP could break above the all-time high to enter into a price discovery zone.

XRP Reaches a 7-Year High

XRP has been among the top performers in 2024, rallying 235% to $2.89 for the first time in seven years. Notably, it briefly flipped the USDT stablecoin to become the third-biggest crypto asset by market capitalization.

It is worth mentioning that XRP peaked at $1.91 during the previous bull run, 43% below the all-time high of $3.38 set in January 2018. Some analysts are now optimistic that the positive developments around the Ripple ecosystem could help XRP record a new all-time high in the coming months.

RLUSD Launches

Ripple’s most-anticipated stablecoin, RLUSD, entered the US markets on December 17th. It launched at a time when the total market cap of stablecoins or cryptocurrencies pegged to fiat currencies like the Euro and USD is rising. According to data from DefiLlama, stablecoins’ market cap has increased by 55% from $129 billion at the start of the year to $203 billion as of this writing.

So, what’s the purpose of RLUSD? Ripple says its stablecoin, which currently runs on the XRP Ledger and Ethereum, will be used to provide cross-border payment solutions. Crypto users who wish to purchase RLUSD can do so on MoonPay, Archax, Bitso, CoinMENA, and Uphold. More options will be made available in 2025, according to Ripple’s recent statement.

Further, to maintain transparency, the RLUSD issuer says it will publish third-party audited proof of reserves every month. This will help the public understand the status of the assets backing the stablecoin.

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XRP Joins the Meme Coin Party

Meme coins have been the most sought-after cryptocurrencies in 2024, with Solana being the main host, thanks to the PumpFun token launchpad. The XRP meme coin ecosystem became active a few weeks ago after token creators noticed growth in investor interest.

Numerous meme coins have already been launched, allowing some degens to make thousands of dollars from almost nothing. For instance, a trader bought the ARMY meme coin in November for $470 and received over $400,000 in profits.

To encourage more traders to migrate to the XRP Ledger, validators have agreed to lower the reserve fees (funds required to maintain a user account). This move is already bearing, with over 100,000 new accounts created since mid-November, according to XRP Scan data.


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Andrew Richard

Andrew is a news writer for Tokenhell, he enjoys tuning in to the daily crypto markets and writing about the latest updates and happenings.

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