Regulator’s Lawsuit Hindered XRP Adoption, Says Crypto Law Firm Managing Partner
According to John Deaton, the managing partner of Deaton Law, the ongoing legal battle between Ripple Labs and the SEC has hindered the broader market adoption of XRP. Deaton shared a post with his followers on X (formerly known as Twitter), where he explained that while making a purchase online, he noticed that BitPay, a payments provider, offered the option to pay with cryptocurrencies. However, Deaton revealed that BitPay had initially included XRP as one of the available cryptocurrencies but removed it after the SEC launched its lawsuit against Ripple. Instead, BitPay added meme tokens like $DOGe and $SHIB, which were created as jokes. Deaton argued that due to the SEC’s actions, a “joke token” is allowed for payments while XRP is not. This example highlights how the lawsuit has impacted XRP’s adoption.
XRP Sees Surge in On-Chain Volumes Despite Legal Battle
Although the legal battle has affected XRP’s adoption, the digital asset has seen a significant increase in on-chain volumes recently. In fact, XRP recorded its highest on-chain volume since February, accompanied by a rise in development activities related to the cryptocurrency. Santiment data shows that XRP’s on-chain transaction volume reached 4.8 billion XRP, and its circulating supply hit 2.03 billion XRP at the beginning of the month. Additionally, development activities for XRP, the fifth-largest cryptocurrency by market cap, have experienced a significant boost. Despite the regulatory challenges, XRP continues to demonstrate resilience and growth in the crypto market.
Hot Take: Regulatory Hurdles Impact XRP’s Potential
The SEC’s lawsuit against Ripple has had a tangible impact on XRP’s adoption and market potential. As regulatory uncertainties loom, cryptocurrency projects face challenges in gaining broader acceptance and usability. The removal of XRP as a payment option by BitPay, a prominent payments provider, is a clear example of how legal battles can hinder innovation and limit consumer choice. While XRP has shown resilience in terms of on-chain volumes and development activities, the regulatory hurdles it faces underscore the need for clear and favorable regulations that promote innovation and foster a thriving crypto ecosystem.
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