Ripple to acquire Rail and SEC lawsuit ends – what this means for XRP’s price

Ripple – announced in a press release on August 7 that the company has struck a $200 million deal to acquire Rail – the stablecoin-powered platform for global payments. On the same date, the U.S. SEC formally dropped its lawsuit against Ripple.

Ripple purchases Rail for $200 Million

This acquisition will reinforce Ripple’s position as a leader in digital assets payment infrastructure. Ripple Payments has a large payout network and market-leading digital assets liquidity. It also offers more than 60 licensing options for managing customer payment flows in an ethical manner. Rail extends Ripple’s capability with virtual accounts, automated back-office infrastructure and eases operations.

Monica Long, Ripple’s President, stated that stablecoins were quickly becoming the cornerstone of modern financial services. With Rail, Ripple is uniquely positioned to lead the next phase in innovation and adoption of blockchain and stablecoins for global payments.

Ripple is one of the largest digital asset payment networks around the world. This acquisition underscores Ripple’s commitment to helping its global customer base move money where they need.

Rail CEO Bhanu Kohli said: “Rail has built the fastest method to settle international business payments using stablecoins. By 2025, Rail will process more than 10% of global B2B payments worth $36 billion. Ripple shares this vision and we are excited to work together to bring innovation to millions of businesses who move money internationally.

Ripple is no longer under SEC investigation

The United States Securities and Exchange Commission (SEC) announced its conclusion on August 7 against Ripple. The SEC brought a case against Ripple Labs in December 2020 towards the end Donald Trump’s first term. They accused the company of not registering XRP tokens as securities.

You can also find out more about the following: SEC released a statement saying, ‘The Securities and Exchange Commission today filed a Joint Stipulation of Dismissal entered into with defendants Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen (“Defendants”) that dismisses the Commission’s appeal and Ripple’s cross-appeal pending in the United States Court of Appeals for the Second Circuit, and resolves the Commission’s civil enforcement action against Defendants.

Those cross-appeals followed a final judgment by the district court that imposed a $125,035,150 civil penalty against Ripple and an injunction prohibiting Ripple from violating the registration provisions of the Securities Act of 1933.  After the dismissal, the final judgment remains in force.

What does this mean to the price of XRP?

XRP, the third largest cryptocurrency in terms of market value behind Bitcoin and Ethereum. According to Tradingguro On, BinanceThe price forecast for XRP can be summarized as follows:

XRP currently holds steady above the $2.90 important level. If it stays above that, it’s seen as a good area to buy – anywhere between $2.90 and $3.00. But if it drops below $2.90, the next support zones are around $2.75 and then $2.55–$2.62.

The first major price challenge is at $3.35–$3.40. If XRP can close above $3.40, it could head towards $3.47, and possibly even $3.80–$4.30 if the momentum stays strong.

The XRP viral news

XRP is at the heart of all crypto-related viral chatter. Die-hard fans point to everything from The Simpsons The headlines are bold and controversial, predicting that the price will be $589. Forbes A speculative growth. A supposed Forbes An article claimed that XRP would reach $59,472 and was then allegedly deleted shortly after. These claims have added more fuel to the fire, with bullish forecasts and in-depth dives into Ripple’s potential partnerships. Whether viewed by some as real or pure speculation the hype has kept XRP on the radar despite market volatility, ongoing legal disputes, and other issues.

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