Ripple CEO Brad Garlinghouse recently admitted that the company should have cooperated with US regulators sooner. Speaking at DC Fintech Week, he acknowledged that Ripple is now trying to make up for lost time following significant legal challenges from the US SEC.
The SEC lawsuit against Ripple alleges that its XRP token was sold as an unregistered security. Although Ripple won a partial victory when a judge ruled that XRP sales to retail investors do not count as securities, the SEC is appealing this decision. This ongoing legal battle creates uncertainty for Ripple and its investors.
A call for better communication
Garling House expressed regrets Ripple’s previous approach, emphasizing the importance of open communication with regulators. He recently criticized SEC Chairman Gary Gensler for his over-regulatory approach to killing crypto, which he described as a “reign of terror” against the crypto industry. Furthermore, he pointed out how negative incidents such as Sam Bankman-Fried’s actions have damaged the reputation of the entire crypto space.
Greater political involvement
In response to the challenging regulatory environment, Ripple has increased its political involvement. Garlinghouse has made frequent trips to Washington DC to discuss cryptocurrency regulation. Ripple has also invested nearly $50 million in political action committees (PACs) that support candidates from both major parties.
Notably, co-founder Chris Larsen recently donated $10 million to a PAC supporting Democratic presidential candidate Kamala Harris. Although made in good faith, this move has caused controversy in the XRP community and many believe that this move could be fatal for XRP and XRP ETFs in the US. This could bring SEC focus back to XRP.
XRP current scenario
Furthermore, as Halloween approaches, The price fell from a high of $0.548 to a low of $0.528, amid a broader market sell-off. However, optimism remains among the XRP community, with 85% of voters expecting a price increase. Historically, October is typically a bullish month for cryptocurrencies.
According to AI predictionsXRP could rise to around $0.6647 by October 31, although it is still far from its all-time high of $3.84 in 2018. Ongoing legal issues with the SEC have hampered its progress.