Not the Possible Russian Connection: Buy Ripple on SEC News

Investors were concerned about Ripple's (XRP-USD) price rising in the wake of Russia's invasion of Ukraine a few weeks ago. For reasons of Russia's banking sanctions, Ripple seemed to be a good bet to rise.

Because Ripple does not want XRP to be associated with the movement of Russian assets, this is becoming increasingly unlikely. As a result, XRP is expected to remain flat in the face of that possible catalyst.

Ripple's long-running SEC lawsuit is also a big part of the story. That has the potential to cause XRP prices to rise and fall dramatically. A look at the company and cryptocurrency's impact on each component is in order.

The Ripple XRP-USD exchange rate was $0.86.

Is There a Ripple-Russian Connection?

The Russian invasion of Ukraine is a powerful example of how finance and politics are inextricably linked.

A large coalition of Western nations decided to ban Russian banks from SWIFT only a few days after the invasion began. The acronym SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. If Russia is removed from the system, its access to foreign capital is effectively cut off, and the country is isolated. Its ability to conduct business in the global financial system is severely harmed.

RippleNet, Ripple's platform, became a logical target because it allows anyone to exchange cryptocurrencies or make cross-border transactions. The thinking was that as Russia sought workarounds to the SWIFT bans, XRP would see a significant increase in usage.

There is no cryptocurrency ban.

In the aftermath of the invasion, Russian crypto accounts are not barred from accessing cryptocurrency in general. Personally, I tend to agree with that assessment: the people are distinct from the government and should be treated as such.

However, Ripple CEO Brad Garlinghouse explained on Twitter (NYSE:TWTR) why Russia will not be able to avoid global sanctions using cryptocurrency. Crypto platforms are not the dark voids that some may lead you to believe. "In order to convert crypto to fiat, exchanges/etc rely on banking partners who may lose their licenses if someone on the OFAC (Office of Foreign Assets Control) list slips through," he wrote.

As a result, the notion that XRP could be the cryptocurrency of choice for Russian oligarchs or Duma members looking to avoid sanctions is ultimately flawed. In the long run, that's probably best for Ripple and XRP.

However, there is other news that could cause prices to rise and remain elevated.

Summary Judgment Is a Possibility

Ripple has long been embroiled in an SEC investigation. That lawsuit will have far-reaching implications for the future of cryptocurrency in general. The Securities and Exchange Commission filed a lawsuit against Ripple in December 2020, alleging that it sold $1.3 billion in unregistered securities to retail investors.

The crux of Ripple's argument has always been that Bitcoin (BTC-USD) and Ethereum (ETH-USD) are not considered securities by the SEC. Ripple, by extension, is not one. The company has repeatedly asked the SEC to define what constitutes a security, but claims that the SEC has obfuscated for the duration of the lawsuit.

There isn't much new there. But what is new, and what could cause XRP to reach new highs, is Ripple's push to end the case.

It is attempting to get the case resolved through summary judgment. If that happens, there will be no trial and the judge will rule in favor of the movant. That would put an end to the drawn-out battle and deal a blow to the SEC's efforts to increase regulatory oversight of cryptocurrency.

What Can You Do With Ripple?

Ripple's victory in its lawsuit against the SEC appears to be unavoidable. When defendants are confident that they will be vindicated, they file a motion for summary judgment. Once that happens, expect XRP to move to new, sustained highs. The only question is when.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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