In a recent interview with Versan Aljarrah on the Black Swan Capitalist YouTube channel, Jake Claver, CEO of Beyond Broke LLC and Director at Digital Ascension Group, has voiced his belief that XRP, the cryptocurrency associated with Ripple, will enjoy significant institutional adoption and trading volume growth as the only regulated digital asset in the United States.
Claver’s optimistic outlook stems from the potential resolution of the ongoing lawsuit between the Securities and Exchange Commission (SEC) and Ripple, which he sees as a pivotal moment for XRP’s future. His views echo those of a small group of industry leaders who anticipate game-changing opportunities for XRP once the legal uncertainty surrounding its classification is resolved.
Regulatory Clarity to Propel XRP’s Unique Position
He further stressed that the SEC vs. Ripple litigation will give XRP regulatory clarity that no other digital asset in the US has. He predicted that financial institutions will rush to XRP once it has a clear regulatory designation. XRP-supporting exchanges may see a significant volume shift due to institutional interest.
The expert noted that the XRP community’s focus on the SEC lawsuit’s negative effects overlooks its possible positives. XRP’s reputation and market position may change after the lawsuit’s result, he suggested.
Implications of XRP Being Classified as a Security
He listed many impacts if XRP were classed as a security. XRP transaction processors may need broker-dealer licenses. As a currency, commodity, or security, XRP’s tax situation is unclear for holders and users.
Furthermore, XRP would also be restricted to fewer exchanges if it were a security. Despite the litigation, UpHold, which has a securities license, trades XRP. If XRP were a security, Coinbase would certainly need a securities license to trade it.
The analyst’s bullish stance aligns with the views of a small group of industry leaders who see the SEC lawsuit as a pivotal moment for XRP. One such figure is Ben Armstrong, widely known as BitBoy, who has previously expressed his belief that XRP’s classification as a non-security, following a trial, sets it apart from other digital assets. Armstrong and others within this cohort anticipate XRP to be one of the major beneficiaries in the next bull run.
Overall, his optimistic stance on XRP’s prospects rests on the assumption that regulatory clarity obtained through the resolution of the SEC lawsuit will propel the cryptocurrency’s institutional adoption and trading volume. While the outcome of the lawsuit remains uncertain, Claver’s views resonate with a small group of industry leaders who see a potential game-changing scenario for XRP in the near future.