Ripple (XRP) is up almost 2% in the last 24 hours just ahead of an important hearing that could have a profound effect on Ripple’s legal battle with the United States Securities and Exchange Commission (SEC), as well as the future of the digital assets industry.
While the crypto community awaits the June 13 release of the controversial documents in the 2-year-long battle between Ripple and the SEC, there seems to be another pressing event that seems to have influenced the recent XRP rally.
On June 6, the US Congress’ House of Representatives Committee on Agriculture will be holding a hearing called “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets,” which Ripple’s Senior Director of Global Policy Susan Friedman said was important for crypto in her tweet on June 1.
While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by @HouseAgGOP is equally so. @CongressmanGT has been a steadfast supporter of the call for clarity in this space. https://t.co/DLLUjDzhQr
— Susan Friedman (@ss_friedman) June 1, 2023
Why is the Upcoming Hearing Important?
The hearing aims to paint a definitive shape regarding the future of the digital asset spot markets and lay the groundwork for a regulatory framework in the crypto ecosystem. It seems the upcoming congressional hearing will hold significant importance for the crypto market, including investors, traders, and digital asset enthusiasts. On June 2, Friedman highlighted the importance of this hearing, citing,
“While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by the US Congress’ House of Representatives Committee on Agriculture is equally so.”
The hearing will also see participation from Paul Grewal, chief legal officer at one of the leading crypto exchanges Coinbase, who has also shared his anticipation regarding the June 6 hearing in his tweet on June 2. He believes this event presents a crucial opportunity for both parties to engage in meaningful discussions and work together to find a viable path forward. Grewal tweeted,
“I’m especially encouraged by the attention the authors give to the discussion around what constitutes security vs a commodity. Hopefully, these definitions can settle that protracted debate once and for all.”
I’m especially encouraged by the attention the authors give to the discussion around what constitutes a security vs a commodity. Hopefully these definitions can settle that protracted debate once and for all. 3/3
— paulgrewal.eth (@iampaulgrewal) June 2, 2023
Other Factors That Have Influenced XRP Price
Following the development, XRP, the digital asset associated with Ripple, has experienced a substantial surge in capital, with an influx of almost $2 billion. According to CoinMarketCap, the digital token is up 2.20% in the last 24 hours to trade at $0.53. Meanwhile, over the past seven days, XRP has skyrocketed more than 11% as optimism towards a Ripple win in the ongoing SEC v Ripple case gained steam.
This comes shortly after prominent Ripple advocate and legal expert John E. Deaton anticipated that a significant number of investors will flock to accumulate XRP once the digital token surpasses the $1 mark. He also forecasted a significant price surge that will trigger a frenzy of buying, fueled by the fear of missing out (FOMO), after the digital asset breaches the $2 mark.
I've thought about it and concluded that it makes sense to have an IPO when XRP is low-priced. When XRP is worth more, it will make the market cap too high, so the sooner after the lawsuit is over the better. https://t.co/mq37f3jbJC
— Linda P. Jones (@LindaPJones) June 1, 2023
Furthermore, it seems the recent price is also due to a Ripple IPO chatter that began late last week and continued into the weekend. Responding to the possible IPO, wealth mentor and author Linda P. Jones took to Twitter on June 2 stating,
“I’ve thought about it and concluded that it makes sense to have an IPO when XRP is low-priced. When XRP is worth more, it will make the market cap too high, so the sooner after the lawsuit is over the better.”