Ripple has been in a legal battle with the United States Securities and Exchange Commission (SEC) for years, accused of selling unregistered securities in the form of XRP tokens. Despite the court declaring that the tokens are not securities, the case is ongoing with a potential appeal.
In an unexpected turn, Ripple has shared its possible status as a federal contractor or subcontractor. This revelation surfaced in a job opening, where the company required applicants to fill out a Voluntary Self-Identification of Disability form as mandated by law.
In this context, a federal contractor/subcontractor is an entity entering a contractual agreement with any US government department or agency.
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Interestingly, the ongoing Ripple case provides insight into the government’s perspective on cryptocurrencies through the SEC. The disclosure of Ripple’s federal contractor or subcontractor status adds a surprising element to the situation.
It’s worth noting that Ripple has previously collaborated with governments worldwide, employing its core technology to facilitate payments and implement central bank digital currencies (CBDCs).
Indeed, despite Ripple’s admission, both parties in the case continue to pursue legal action against each other. In the latest update, the SEC seeks to compel Ripple to share financial documents and information related to its XRP sales. The SEC presents this move as crucial for determining necessary remedies.
What next for XRP?
On the other hand, XRP has experienced a notable sell-off after failing to sustain its position above the $0.60 support following months of trading in a consolidated zone. Currently, it remains uncertain whether the latest developments surrounding Ripple’s relationship with the government will have an impact on XRP.
Given recent movements, XRP investors are eagerly anticipating the next market shift, watching for signs of either a breakout or a continuation of the sell-off. Currently, the cryptocurrency has found substantial support around the $0.55 mark, which shows resilience. Notably, this resilience is instilling confidence among traders.
However, despite XRP appearing stable at the $0.55 support zone, caution is warranted as this level should not be considered an absolute bottom. Recognizing that the token remains susceptible to other market sentiments. In the event of a retest below this support, it could potentially signal a further decline.
XRP price analysis
By press time, XRP was trading at $0.57, reflecting minimal gains of over 2% in the last seven days.
Finally, several analysts have pointed out the looming threat of further correction for XRP in the coming days. A previous Finbold report highlighted that crypto analyst AlanSantana warned the market to prepare for a potential drop, citing XRP’s inability to maintain a position above $0.60 in the past week. Consequently, the impact of XRP’s collaboration with the federal government remains to be seen.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
