Despite the SEC lawsuit, BRICS countries and Japan continue to show interest in XRP. The coin has recovered from losses caused by an appeal filed earlier this week.
Despite the uncertainty in the Ripple ecosystem, the XRP coin has attracted attention from prominent parties and organizations. Earlier this week, the U.S. Securities and Exchange Commission (SEC) filed an appeal in the Ripple lawsuit, potentially extending the legal battle that began in 2020.
As CNF mentioned earlier, the regulator’s move immediately resonated throughout the community, resulting in a drop in the price of XRP. Despite this change, XRP remains attractive to users.
BRICS and Japan promote XRP implementation
Amid these challenges, the intergovernmental organization BRICS Alliance and Japan continue to promote the adoption of XRP. Prominent analyst Crypto Tank said on XPost that the SEC’s appeal filing did not hinder the adoption of XRP by the BRICS and Japan.
“The SEC appeal is not important. BRICS and Japan are still adopting XRP and are not concerned about the lawsuit in the slightest,” says Cryptotank. Analyst comments reinforced the opinion that XRP is important to the emerging financial system.
The SEC’s appeal is immaterial. BRICS and Japan are still adopting XRP and are not concerned about the lawsuit in the slightest. Brad has mentioned this before. XRP will be at the heart of the new financial system no matter what. Don’t be confused…
— Crypto Tank (@Tank2033js) October 2, 2024
He also highlighted a previous statement by Ripple CEO Brad Garlinghouse, describing XRP as the centerpiece of the new financial system. In fact, XRP’s characteristics as a bridge asset have made it a popular choice among businesses and financial institutions.
Unlike other traditional payment networks, XRP is easily accessible, cheap, and virtually frictionless. These features make this coin a more viable option for the BRICS alliance, created by countries seeking freedom from the US dollar.
The BRICS countries initially consisted of Brazil, Russia, India, China, and South Africa. In 2024, five new countries will join the alliance, including Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. This partnership promoted the use of local currencies and reduced dependence on the US dollar.
Developing countries consider this initiative beneficial to their financial systems. Recently, BRICS announced the development of a blockchain-based payment system. In a previous CNF article, Russian President Vladimir Putin said the system would allow BRICS countries to conduct international trade without interference from the Western financial system.
Interestingly, XRP adoption is also spreading across Japan. As revealed in a previous CNF report, 80% of Japanese banks use Ripple for blockchain payments. This highlights the growing importance of Ripple and XRP in the traditional financial sector.
Legal battle over XRP
The SEC recently filed a notice of appeal against Judge Annalisa Torres’ July 2023 ruling in the Ripple case. The ruling at the time held that the sale of XRP to individual investors did not constitute a securities transaction, giving Ripple a partial victory.
However, a court recently ruled that Ripple must pay a $125 million fine for violating securities laws through its institutional sales. This amount is far less than the $2 billion the SEC originally requested from Ripple.
With this appeal, most experts and community members expect the SEC to challenge XRP’s security classification when traded on exchanges. Notably, the regulator previously filed an interlocutory appeal, which the court rejected. Many community members expect regulators to encounter a similar outcome this time around.
Per XRP, the coin erased most of its losses and rose 1.02% to $0.5231 in the past 24 hours.
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