In the tempestuous seas of the crypto world, Ripple’s XRP had embarked on what seemed like an Odyssey of mainstream adoption. However, a metaphorical Kraken named SEC (Securities and Exchange Commission) derailed its voyage in December 2020, sparking a debate about what might have been if not for this lawsuit.
Crypto lawyer John Deaton recently detailed how the SEC lawsuit against Ripple has resulted in almost three years of lost adoption opportunities for XRP, particularly in the United States. This reflection comes as Coinbase announced their minority stake acquisition in USD Coin (USDC) issuer Circle, igniting curiosity about what could have been for Ripple and XRP if history had been more kind.
The timing of Deaton's commentary is poignant, coming as the XRP token price continues to flounder at $0.52, prompting pro-XRP advocates to wonder what could have been.
Before the lawsuit, Coinbase and other key players like MoneyGram were more than just flirting with Ripple and XRP. They did their due diligence, reaching out to the SEC for regulatory clarification, and received no objections. Specifically, in a January 2019 meeting, Coinbase laid out its stringent framework for evaluating XRP, a framework that even won a public nod of approval from the SEC's senior staff.
MoneyGram, a key remittance partner for Ripple, also interacted with the SEC without any issues arising. The glaring inconsistency here is that despite these seemingly tacit approvals, the SEC still proceeded with the lawsuit.
Deaton points out that Ripple was on a trajectory similar to other successful crypto tokens before the lawsuit, with major institutions like Coinbase likely to have shown similar interest. His questions raise a cloud of "what-ifs" that hover over Ripple’s past, present, and future.
Would Coinbase have acquired a stake in Ripple like it has in Circle? What would XRP's price be today? Could Ripple's blockchain technology have become the industry standard for cross-border payments, rivalling even the adoption rates of leading stablecoins?
Despite the gloom, it's worth noting that Ripple did get a partial nod of approval on July 13 when New York District Court Judge Analisa Torres ruled that XRP sales on digital asset exchanges were not securities. The ruling offers a glimmer of hope but doesn’t completely clear the stormy skies for Ripple.
While the blockchain world moves at the speed of light, regulatory processes are more like molasses flowing uphill in winter. The SEC's lawsuit against Ripple is a classic example of this dissonance. In a market where time is money—cryptomoney—the three lost years for Ripple are invaluable.
It's not just about the token price; it's about the adoption curve. Ripple had the potential to redefine cross-border payments, which is a trillion-dollar industry. Even though Ripple continues to succeed outside the U.S., capturing 95% of its market there, the shadow of what it could have been in its home country looms large.
Could it have been a different story if Ripple were sailing without the anchor of this lawsuit? Most certainly, yes. But now, Ripple is tasked with navigating the waters with a hole in its hull. Despite the setback, this is still a journey worth watching. After all, the most compelling stories are those of redemption, and Ripple has the makings of an epic.
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