As we dip our toes into the expansive sea of digital finance, blockchain company Ripple has shared an exciting development. It has successfully acquired Money Transmitter Licenses (MTLs) in the states of New York and Texas. With this essential move, Ripple aims to widen its domestic presence in the United States marketplace.
Ripple Expands in the United States
On January 27th, Ripple revealed this strategic acquisition, citing an increase in demand for compliant and immediate global payment solutions from both states. Anticipating the growing needs of financial institutions and crypto businesses, the company is poised to leverage the advantages of cryptocurrency and blockchain technology.
Joanie Xie, the North American Managing Director at Ripple, acknowledged the rising interest in unlocking the benefits of accelerated, cost-effective, and round-the-clock cross-border payments through crypto and blockchain.
Gaining Regulatory Approvals
These successful approvals in New York and Texas have now taken Ripple’s total U.S. MTLs count past the 50-mark. Additionally, it has received over 60 global regulatory approvals. Among these are the New York BitLicense, New York Limited Purpose Trust Company Charter, and a Major Payment Institution License from Singapore’s Monetary Authority.
Optimistic shift in Regulatory Landscape
The acquisition of MTLs comes amidst a wave of optimism within the U.S. cryptocurrency community. Observers have cited the crypto-friendly stance of the Trump administration as a positive sign for the industry.
Ripple concurs that the U.S. cryptocurrency regulations are undergoing a notable shift. In particular, the company acknowledged the Securities and Exchange Commission (SEC)’s recent step back from imposing severe requirements on banks offering crypto custody.
Seemingly, with the advent of a new administration, policymakers and regulators are beginning to appreciate the role of digital asset innovation. This acknowledgment comes hand-in-hand with the formation of a new digital asset task force by the SEC, anticipated to have a pro-cryptocurrency head.
Legal Challenges with the SEC
Despite positive developments and increasing use of Ripple’s underlying cross-border payment technology, the firm is still treading cautiously due to its ongoing legal battle with the SEC.
The SEC accused Ripple of unlawfully raising $1.3 billion via the sale of XRP, alleging it to be an unregistered security. In a surprising turn of events, Judge Analisa Torres ruled in 2023 that some XRP sales did not breach securities laws owing to a blind bid process. However, she acknowledged that direct sales to institutional investors were indeed securities contracts and penalized Ripple with a fine of $125 million.
The SEC lodged an appeal in October 2024, arguing that the ruling was inconsistent with Supreme Court precedent. However, with the appointment of SEC Chair Paul Atkins, there are hopes for a possible resolution.
Impact on the XRP Price
Curiously, the changing regulatory scenario has contributed to XRP breaking out of a lengthy consolidation period below the $1 mark. As of now, XRP is priced at $2.92, a slight 4.6% decrease in the last 24 hours, with $3 being the critical short-term resistance barrier.
Ripple’s acquisition of additional MTLs could significantly influence the XRP price trajectory. This development, combined with the overall market trend, could potentially trigger growth in XRP prices.
FAQs
What is Ripple?
Ripple is a blockchain-based firm known for its digital payment protocol, enabling fast, low-cost international money transfers.
What are the benefits of Ripple acquiring MTLs?
The acquisition of MTLs allows Ripple to expand its domestic footprint in the United States, catering to the increased demand for compliant, real-time global payment solutions.
What effect does this have on the price of XRP?
The acquisition, combined with the overall market trend, could potentially trigger a rise in XRP prices.
What are the legal challenges Ripple is facing with the SEC?
Ripple is currently in an ongoing lawsuit with the SEC, who accused the company of unlawfully raising $1.3 billion via the sale of its digital currency, XRP. However, with the appointment of a new SEC Chair, there is hope for resolution.
