AMEX Adoption, Potential Fourth Lawsuit: Will XRP Fall?
Colin O’Flaherty, the Vice President of American Express, confirmed officially on Wednesday that the company uses xCurrent—Ripple Inc’s financial solution based on blockchain technology.
In The Money 20/20 event held in Amsterdam from 4th to 6th June, Colin, who is also the General Manager of Global Commercial Service UK & Russia, spoke on the last day. At a discussion session, he said:
“Ripple offers instantaneous, point-to-point conversations between the sender and receiver of funds. And that provides a real opportunity to alleviate most of the issues our customers are facing.”
Brad Garlinghouse, the CEO of Ripple, was one of the panelists at the event. He spoke about Bitcoin (BTC), the cryptocurrency markets, and Ripple, earlier at the event, highlighting the advancements his blockchain startup has made over the years in the financial industry. According to Brad, an increasing number of banks had continually been accepting Ripple’s technology.
Last year, in November, American Express, along with Santander Bank, entered an agreement with Ripple for using its technology for facilitating and speeding up cross-border payments between the UK and US. After the arrangement, payments made using the FX International Payments (FXIP) platform of American Express were routed using RippleNet, Ripple’s enterprise blockchain network.
xCurrent and xRapid are some of the major products of the RippleNet. xCurrent had been integrated with the existing infrastructure of American Express to facilitate customer-SME payments. Ripple was in the news for it.
Ripple is in the news again. Sadly, this time it is for what could potentially be the fourth lawsuit against the company. Rosen Law Firm is investigating whether Ripple Labs, Inc. had violated any federal securities laws or not. According to the New York-based law firm, the company “represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation” and that because of this, they are planning to go for a “class action lawsuit to recover losses suffered by purchasers of Ripple’s XRP tokens.”
Regulatory clarity hasn’t shaped up properly for the crypto industry yet. However, they are shaping up slowly and steadily, with rules changing in various parts of the world. Crypto investors feared that regulators would simply ban the cryptocurrencies. However, most regulators simply regulated the cryptocurrencies instead of banning activities related to cryptocurrencies completely.
The US Securities and Exchange Commission (SEC) think of Ethereum and Bitcoin as commodities—a monumental development in the world of cryptocurrencies. In fact, since both of the cryptocurrencies are not subject to any of the laws which are applied to financial instruments such as stocks, the feat becomes even more special.
William Hinman, the Director of SEC’s Division of Corporation Finance said:
“Putting aside the fundraising that accompanies the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network, and its decentralized structure, current offers, and sales of Ether are not securities and transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value”.
XRP has already fallen down 17.37 percent. If it is surrounded by lawsuits even in the future, it would definitely fall further.