Ripple’s In-Principle Approval in Singapore Sparks Discussion on XRP’s Price Reaction and SEC’s Claims
Ripple, a prominent blockchain company, recently secured In-Principle approval from the Monetary Authority of Singapore (MAS), a significant milestone for the firm. The news has generated various discussions among industry experts, including John E. Deaton, a pro-XRP lawyer, who shared his thoughts on the development.
Deaton Says XRP’s Price Reaction Follows Bitcoin’s
Attorney Deaton expressed that the approval from MAS is noteworthy since only a limited number of companies, fewer than 20, have obtained such a license in Singapore. He emphasized that while the utilization of XRP is expected with this license, the coin’s price did not respond significantly to the news. Deaton pointed out that XRP has been following the price movements of Bitcoin and the overall market, instead of reacting directly to Ripple’s achievements.
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For the record, this news from @Ripple is fairly significant. Less than 20 companies have received such a license in Singapore 🇸🇬 and XRP will be utilized. Yet, #XRP doesn’t move up, even a little. If all XRP holders in the 🌎 are in a common enterprise with Ripple and relying on… https://t.co/TIakLamh0c
— John E Deaton (@JohnEDeaton1) June 22, 2023
Deaton further argued that all XRP holders are part of a common enterprise with Ripple, as they rely on the company’s efforts to drive gains. In that regard, one would expect the price of XRP to react positively to Ripple’s milestones, such as securing the MAS approval. However, the attorney highlighted that XRP’s price movement has not aligned with these expectations and has largely mirrored the broader crypto market trends.
Addressing concerns raised by Australian-based lawyer Bill Morgan regarding the applicability of XRP in On-Demand Liquidity (ODL) transactions, Deaton clarified that the MPI license obtained by Ripple would indeed allow XRP to be utilized in ODL transactions. This clarification reinforces Ripple’s ability to leverage XRP for cross-border settlements, an essential aspect of their ODL solution.
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Ripple’s In-Principle license enables its subsidiary, Ripple Markets Asia Pacific, to expand the implementation of the ODL solution in Singapore. It is crucial to note that ODL leverages XRP for efficient and cost-effective cross-border transactions.
Recent MAS Approval Influenced XRP’s Price Reaction Briefly
While the announcement of the MAS approval initially caused a slight spike in XRP’s price, with the coin briefly reaching $0.52 from $0.50, it eventually settled around $0.49. This price movement, along with the performance of other cryptocurrencies during the same period, suggests that the market as a whole influenced XRP’s value rather than the specific news of Ripple’s license approval.
This recent development raises questions regarding the U.S. Securities and Exchange Commission’s (SEC) claims that XRP investors are in a common enterprise with Ripple. The lack of a direct correlation between Ripple’s achievements and XRP’s price movements could be seen as contradictory to the SEC’s arguments. However, it is important to note that the legal proceedings between Ripple and the SEC are ongoing, and the outcome is yet to be determined.
As the Ripple ecosystem continues to evolve and expand, regulatory approvals like the MAS In-Principle license play a crucial role in facilitating Ripple’s operations and its utilization of XRP. The discussions surrounding XRP’s price behaviour and its relationship with Ripple’s achievements highlight the complexities and nuances of the cryptocurrency market, particularly in the context of regulatory scrutiny and investor expectations.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
