Is the XRP Rally Already Over Again? Setback for Stock Exchange Plans
Ripple (XRP) wants to start big in Europe with its business for financial institutions, but is being thwarted by the British authorities. In the US, Ripple’s IPO plan has also hit a snag.
Ripple (XRP) had started July with an important legal victory over the US Securities and Exchange Commission (SEC), triggering a price rally in XRP. However, from the XRP price of $0.94, euphoria has been dampened; XRP is currently trading at around $0.60, reflecting that Ripple is facing regulatory headwinds in its plans for an international expansion. Recently, it was the British financial regulator Financial Conduct Authority (FCA) that effectively stopped Ripple’s efforts to obtain a MiCA license.
Ripple’s MiCA License Application: Blocked in the UK
Ripple’s hopes were high: According to a report from the Financial Times, the company has been trying since the beginning of the year to act as a broker under MiCA (Markets in Crypto-Assets Regulation) in the European Union. But in the UK, entrenched European bureaucratic hurdles were encountered. Thus, the British FCA refused to provide favorable treatment or to process Ripple’s application any faster than usual. Consequently, Ripple was forced to abandon their UK application and should look to mainland Europe for their licensing processes.
Stock Market Hopes in the US Wanes
Just a few weeks ago, Ripple boss Brad Garlinghouse was optimistic about plans to take the company public during an investor conference. But the excitement has since faded. Because the partial win in court against the SEC is not enough for the stock exchange plans – the XRP case continues into the next round.
In mid-October, the SEC also temporarily resolved its lawsuit against Ripple in another aspect, claiming that the company’s credit assets make it a financial institution. Ripple, on the other hand, defends that it is first and foremost a payment service provider and is not liable for varying rules in the stock market mayhem. But with the case pending, it is clear that the IPO of Ripple cannot be expected before 2024.
Conclusion: Ripple and XRP Must Wait In Line
Ripple’s ambitions to reach the top as a blockchain solution for payment and financial companies are apparently a long way from fulfillment. XRP, as their native coin, will not offer enough positive growth momentum in the near future if the prospect of significant expansion is being stalled. Investors in XRP must be aware that the SEC’s legal uncertainty, which has lasted for more than three years, is far from being resolved and that setbacks in global licensing are also part of the current reality for Ripple.
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