Ripple Labs Provides Q4 Update on XRP Performance and Legal Progress
In their Q4 report, Ripple Labs shared important insights into the performance of XRP and the company’s legal victories, as well as key developments in the crypto market. The report reveals that XRP’s trading volumes experienced a significant recovery in Q4, reaching $600 million daily, marking a 75-100% increase from Q3 lows. This aligns with the overall resurgence of the crypto market, with Bitcoin and Ethereum volumes also showing substantial growth.
Legal Milestones Against the SEC
Ripple celebrated a successful year with notable wins against the SEC. A court ruling in July determined that XRP is not a security under federal law, exempting most of Ripple’s sales from being classified as investment contracts. This ruling not only vindicates Ripple but also sets a precedent for token regulation in the US. However, some of Ripple’s institutional sales were found to be investment contracts, requiring registration with the SEC.
The company is now preparing for the remedies phase of the case, focused on Institutional Sales. Legal briefs will be submitted in March and April, and the court will decide on appropriate remedies.
Major Change: Ripple Restructures Its XRP Sales
Following the court’s decision, Ripple has adjusted its XRP sales strategy to comply with legal standards. The company is committed to transparency, ethics, and compliance, and has already made significant changes to its sales process.
Regulatory And Licensing Achievements
Ripple has achieved significant licensing milestones, including a Major Payments Institution license from the Monetary Authority of Singapore and registration as a virtual asset service provider by the Central Bank of Ireland. These licenses demonstrate Ripple’s commitment to regulatory compliance.
XRP Ledger Developments
The report highlights advancements within the XRP Ledger ecosystem, including the introduction of a non-custodial automated market maker (AMM) as a native feature of the decentralized exchange. These developments aim to enhance liquidity and market efficiency and showcase Ripple’s dedication to technological innovation.
On-Chain Activity And NFT Growth
The XRP Ledger has experienced a surge in on-chain transactions and NFT minting and sales. This demonstrates the growing utility and adoption of the ledger, particularly in digital asset and NFT markets.
XRP Holdings Update
Ripple provided an update on its XRP holdings, noting a slight decrease in direct holdings and a reduction in escrow-locked XRP. As of December 31, 2023, Ripple held 5.077 billion XRP, with an additional 40.7 billion XRP held in escrow.
Hot Take: Ripple’s Q4 Report Highlights Strong Recovery and Legal Milestones
Ripple’s Q4 report showcases the impressive recovery of XRP’s trading volumes, aligning with the overall growth of the crypto market. Additionally, Ripple celebrates significant legal victories against the SEC, establishing clarity on the regulatory status of tokens in the US. The company is now focused on the remedies phase of the case, while also restructuring its XRP sales strategy to comply with legal standards. Ripple’s commitment to regulatory compliance is further demonstrated through licensing achievements and ongoing developments within the XRP Ledger ecosystem. Overall, the report reflects Ripple’s resilience and progress amidst a rapidly evolving crypto landscape.
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