Ripple’s XRP Dilemma and SEC’s Latest Move: A Regulatory Rollercoaster for Cryptocurrency Sector

• Ripple’s Liquidity Hub (LH) lacks support for XRP, causing outrage among part of the XRP community.
• The SEC has named six crypto assets as securities, including Dash, Algorand, OMG Network, Monolith, NAGA, and IHT Real Estate Protocol, in a lawsuit against crypto exchange Bittrex.

Regulatory uncertainty affects Ripple’s business and XRP community The cryptocurrency sector is waiting for the final decision in the lawsuit between Ripple and the SEC, but regulatory uncertainty has already started to impact Ripple’s business and standing with the XRP community.

Ripple’s newest product, Liquidity Hub (LH), lacks support for XRP, which has caused some outrage among the XRP community. However, Ripple’s General Counsel explained that the product is designed for institutional customers, and regulatory clarity is important to them. The lawyer confirmed that XRP support might be introduced in the future when more regulatory clarity is achieved.

SEC names six crypto assets as securities

The SEC has recently named six crypto assets, including Dash, Algorand, OMG Network, Monolith, NAGA, and IHT Real Estate Protocol, as securities in a lawsuit against crypto exchange Bittrex. According to the SEC press release from April 17, the agency alleges that investors had “reasonable expectation of profits” from these digital assets.

However, the lawsuit is against the exchange and not the issuers of the assets. Ripple’s CTO commented on the development on Twitter, stating that it “sounds like investment advice” from the SEC.

Sounds like investment advice to me.https://t.co/RjyUfVtN6C

— David “JoelKatz” Schwartz (@JoelKatz) April 17, 2023

Is Ethereum a security?

During his recent testimony before the US House of Representatives Financial Services Committee, SEC boss Gary Gensler refused to provide a clear answer to the question of whether Ethereum is a security. This has raised concerns in the cryptocurrency sector, as Ethereum is one of the largest cryptocurrencies by market cap.

XRP price update

At the time of writing, XRP was changing hands at a price of $0.46, down 1.92% on the day and 11.18% over the previous seven days. However, XRP has still seen an 8.47% increase in price over the last month, according to the latest chart data.

In summary, Ripple’s business and XRP community are already feeling the impact of regulatory uncertainty in the cryptocurrency sector. The SEC’s recent lawsuit against Bittrex, naming six crypto assets as securities, has also raised concerns. The cryptocurrency community is eagerly awaiting more regulatory clarity, including a decision in the Ripple v. SEC case and a clear answer on whether Ethereum is a security.

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