Ripple native token XRP and a sizable portion of the crypto market have been struggling with regulatory scrutiny by the US Securities and Exchange Commission. The other day, Bittrex filed for bankruptcy after the SEC lodged a complaint against the exchange.
Coinbase was targeted by the SEC as well, with Brian Armstrong, the company CEO, saying that they’re in “a lone crusade” against the “anti-crypto view” of the regulatory agency’s chief, Gary Gensler.
Ripple was the first one to be on the crosshair of the regulatory body. According to Ripple CEO Brad Garlinghouse, the company will have shelled out $200 million in defending itself against the SEC by the time the legal showdown is over.
XRP is no doubt affected by both the Ripple vs. SEC case and the overall crypto market. According to CoinGecko, XRP is down 7.2% in the last seven days after the market continues to correct itself. For investors, the legal drama will be the main catalyst for a bullish price movement in the near future.
Regulatory Clampdown Strengthens Bears
Although the market has rebounded well from its 2022 pitfalls, regulation in the crypto world remained a serious topic of discussion. Despite no updates regarding the Ripple v. SEC case, XRP bulls are optimistic the exchange will win the case.
However, the crypto market as a whole was besieged by new controversies and issues by other regulatory bodies. One of the most recent ones is the $1.2 million fine imposed by the New York State Department of Financial Services on bitFlyer USA for its failure to comply with cybersecurity standards.
XRP total market cap currently at $22.3 billion on the daily chart at TradingView.com
Binance, one of the world’s biggest crypto exchanges, was also hit by another wave of investigations after allegedly helping Russia with circumventing sanctions. This information comes nearly a month after the exchange quietly lifted its restrictions on Russian nationals on accessing their services. So far, Binance has not responded to any inquiries regarding this issue.
Whether it’s true or not, this year will be particularly harsh on XRP and the crypto market as a whole as authorities hammer down on digital currency companies and establishments.
XRP Price Retreats To $0.432
At the time of writing, the token’s price fell to $0.432, from an earlier $0.450, allowing the bears to continue strengthening their position. A quick look at the token’s performance shows it has been struggling in the last two weeks, losing 8.2%. It’s no different in the monthly timeframe, with XRP shedding nearly 15%.
Meanwhile, in another development, CoinGlass reports that Bitcoin short sellers overtook long buyers in the past 24 hours. This can be a precedent to further market pain.
With the markets continuing to experience jitters in the medium to long term, any positive update on the Ripple vs. SEC case might help a bullish scenario to form. However, the broader market momentum might tie down XRP in the short run.
-Featured image from Staying Afloat