The US Securities and Exchange Commission (SEC) has lifted the bad actor designation for Ripple, opening up avenues for the company to raise private capital.
SEC's Decision and Its Reasons
On August 8, the SEC announced its decision in light of recent facts, including the desire to resolve the lawsuit. The bad actor designation was initially enacted in 2020 when the SEC sued Ripple for violating Section 5 of the Securities Act. Judge Analisa Torres ruled that Ripple's sales of XRP to private investors were considered unregistered securities.
XRP Community Reaction
Pro-XRP attorney John Deaton remarked that Ripple can now conduct its business as if the lawsuit had never happened. This decision is viewed as a significant victory for Ripple. However, some members of the XRP community expressed dissatisfaction with the SEC, citing years of uncertainty that resulted in losses for long-term investors.
Outlook and Predictions for XRP
Analysts believe XRP is positioned for further gains. Data from Santiment indicates spikes in utility on the XRP Ledger could lead to price increases. Trading volume over 24 hours surged by 208%, reaching $12.4 billion, significantly higher than Solana's trading volume.
The lifting of the bad actor designation by the SEC provides Ripple with new business opportunities while also contributing to the growth of XRP, which may emerge as one of the top-performing assets in the current market.
