Ripple (XRP) is up almost 2% in the last 24 hours, just ahead of a major hearing that could have a profound effect on Ripple’s legal battle. with the United States Securities and Exchange Commission (SEC), as well as on the future of the digital asset industry.
As the crypto community awaits the release on June 13 of the controversial documents in the two-year battle between Ripple and the SEC, there appears to be another pressing event that appears to have influenced XRP’s recent rally.
On June 6, the US Congressional House Committee on Agriculture will hold a hearing called “The Future of Digital Assets: Providing Clarity for Digital Asset Markets”, that Ripple’s Senior Director of Global Policy, Susan Friedman said it was important for cryptocurrencies in her June 1 tweet..
While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by @HouseAgGOP is equally so. @CongressmanGT has been a steadfast supporter of the call for clarity in this space. https://t.co/DLLUjDzhQr
—Susan Friedman (@ss_friedman) June 1, 2023
WHY IS THE NEXT HEARING IMPORTANT FOR RIPPLE?
The hearing aims to definitively shape the future of digital asset markets and lay the groundwork for a regulatory framework in the crypto ecosystem.. It looks like the upcoming congressional hearing will have significant significance for the crypto market, including investors, traders, and digital asset enthusiasts. On June 2, Friedman highlighted the importance of this hearing, citing:
“While the upcoming HFSC hearing on June 13 is important for cryptocurrencies, the one to be held next week by the US House of Representatives Committee on Agriculture is just as important.”
The audience will also feature the participation of Paul Grewal, Legal Director of one of the main crypto exchanges, Coinbase, who has also shared his anticipation of the June 6 hearing in his June 2 tweet. He believes that this event presents a crucial opportunity for both parties to engage in meaningful discussions and work together to find a viable path forward. Grewal tweeted:
“I am especially encouraged by the attention that the authors pay to the debate about what constitutes a value and what is a commodity. I hope these definitions settle that longstanding debate once and for all.”
I’m especially encouraged by the attention the authors give to the discussion around what constitutes a security vs a commodity. Hopefully these definitions can settle that protracted debate once and for all. 3/3
— paulgrewal.eth (@iampaulgrewal) June 2, 2023
OTHER FACTORS THAT HAVE INFLUENCED THE PRICE OF XRP
Following the development, XRP, the digital asset associated with Ripple, has seen a substantial increase in capital, with an influx of nearly $2 billion.. According to CoinMarketCap, the digital token is up 2.20% in the last 24 hours and is trading at $0.53. Meanwhile, over the past seven days, XRP has surged over 11% as optimism towards a Ripple victory in the SEC case against Ripple gathered steam.
This comes shortly after prominent Ripple advocate and legal expert John E. Deaton anticipated that a significant number of investors would move closer to accumulating XRP once the digital token crosses the $1 mark. He also forecast a major price rise that would trigger a buying rush, fueled by fear of missing out (FOMO), after the digital asset breaches the $2 mark.
I’ve thought about it and concluded that it makes sense to have an IPO when XRP is low-priced. When XRP is worth more, it will make the market cap too high, so the sooner after the lawsuit is over the better. https://t.co/mq37f3jbJC
—Linda P. Jones (@LindaPJones) June 1, 2023
Besides, it seems that the recent price is also due to rumors of a possible Ripple IPO which started late last week and continued through the weekend. In response to the potential IPO, wealth mentor and author Linda P. Jones posted on Twitter on June 2:
“I have thought about it and have concluded that it makes sense to do an IPO when XRP is low. When XRP is worth more, the market cap will be too high, so the sooner after the demand the better.”
