It has been more than 2 and a half years since the lawsuit between the blockchain payments firm, Ripple Labs Inc and the United States Securities and Exchange Commission (SEC) was instigated and thus far, the firm has experienced both losses and gains in its business.
In a recent Twitter chat, one of the vocal XRP advocates revealed that Brazilian bank Rendimento was the first to adopt Ripple’s blockchain for payments entirely in the cloud. According to him, the company has recorded tons of such partnerships but the impact is not reflected in the price of its underlying cryptocurrency – XRP.
He posited that just like Rendimento, many of the firms that have adopted Ripple’s payment solution are not utilizing the XRP coin as a result of the associated regulatory uncertainty. Commenting on this tweet, popular XRP advocate and attorney, John Deaton says many people are underestimating the impact of the lawsuit on Ripple’s business as well as the growth of the digital currency.
While the Brad Garlinghouse led firm is making significant business strides in foreign markets, Deaton said the US remains an important one for the company.
Some have argued that I’m wrong when I say: “people grossly underestimate the damage the lawsuit has caused @Ripple and #XRP.” People cite Ripple’s growth outside the U.S. but the U.S. market is very important. Ripple isn’t even offering #XRP for its own Liquidity Hub platform! https://t.co/oZiMnALszW
— John E Deaton (@JohnEDeaton1) May 27, 2023
Benefit for XRP and Ripple Post Lawsuit
According to insights revealed by the aforementioned XRP advocate that recalled the Rendimento update, the bank said it will not make use of the digital currency because of regulatory reasons. As such, should the lawsuit be over, we may begin to see more integration of XRP alongside Ripple’s proprietary technology.
In the early days of the lawsuit, one of Ripple’s primary partners in the US, MoneyGram International deserted the company on grounds it was unsure of its future per the legal battle it was embroiled in. This decision was made by Moneygram despite a successful business relationship both enjoyed until that point.
While mainstream payments firms turned their backs on Ripple, crypto native trading platforms also delisted XRP for trading, a move that stirred outrage from the community at the time. Should the Ripple vs SEC lawsuit come to an end soon as is being projected, Ripple can get a better headway for its operations in the United States irrespective of what the outcome is.
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