Ripple SEC Lawsuit Dropped

In a landmark regulatory move, the United States SEC has dropped its appeal and lawsuit against crypto company Ripple Labs.

Ripple CEO Brad Garlinghouse confirmed the updates, ending a legal fight that began in December 2020.

> JUST IN: 🇺🇸 Ripple CEO Brad Garlinghouse declares victory after SEC officially drops lawsuit. “This case has ended. It’s over.”

The development sparked optimism in the cryptocurrency community, with remittance tokens leading the altcoin rebound. XRP saw a remarkable jump from $2.23 to $2.55 at press time.

Also, Stellar capitalized on the buzz to outshine other altcoins due to close connections with Ripple. XLM gained more than 10% on its 24-hour price chart to trade at $0.2933.

Stellar and Ripple: Similarities

In the flooded crypto market, Ripple and Stellar have many similarities.

First and foremost, both have common origins. Jed McCaleb was Ripple’s early contributor before he exited to found Stellar in 2014.

> Sooo the man that founded Ripple, is the cofounder of Stellar! 🤷🏻‍♀️😅 Oh yea, and is partnered with SpaceX So maybe don’t completely write off Stellar

Moreover, Ripple and Stellar serve similar purposes in global remittances. XRP allows financial institutions and banks to complete cost-friendly and quick international payments, and the company plans to launch its cryptocurrency wallet for smooth transactions.

Meanwhile, XLM focuses on financial inclusion, allowing businesses and individuals to transact worldwide with fewer charges, working with fintech firms and emphasizing P2P transactions.

Further, the two blockchains do not rely on Proof-of-Work mechanisms. XLM uses Stellar Consensus Protocol (SCP), which depends on a quorum for validating transactions, while XRP relies on Ripple Protocol Consensus Algorithm (RPCA) with trusted nodes.

Stellar and Ripple process transactions quicker at minimal charges, making them key for remittance payments, explaining why XLM mirrors XRP’s price actions amid significant developments.

XLM and XRP Prices

Both tokens experienced substantial gains following the SEC’s decision concerning Ripple. XLM recorded a daily rise of over 10%, trading at $0.2933 with a significant 24-hour trading volume. XRP led the gains with a swift 15% jump after Garlinghouse’s announcement, now trading at $2.55, reflecting renewed optimism.

Chart by Coinmarketcap

XLM and XRP aim to extend gains before potential retracements, while broad market sentiments will impact their performance. Notably, digital assets marked recoveries on Wednesday amid speculations of the Fed maintaining interest rates. Bitcoin gained 3%, trading at $84,370, signaling potential for stable recoveries.

A solid closing above $85K for BTC is crucial for its short-term trajectory. Michael van de Poppe noted Bitcoin’s recovery of lower timeframe liquidity, suggesting potential upward breakouts.

> #Bitcoin took the liquidity beneath the lower timeframe low and has regained it. Very likely we’ll be breaking upwards from here.

Meanwhile, experts predict historical bull runs, considering optimistic regulatory developments and increased institutional participation through crypto ETFs.

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