Ripple (XRP) has been on a tear, jumping 73% over the past month to trade around $3.5, inching closer to its all-time high of $3.84 set in early 2018. While the token is taking a breather today, the broader crypto market remains in overdrive, fueled by last week’s huge development: the House of Representatives passed the first significant cryptocurrency legislation, marking a major shift in how the U.S. approaches digital assets.
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The GENIUS Act – the Guiding and Establishing National Innovation for U.S. Stablecoins Act – establishes the country’s first federal framework for regulating stablecoins and was officially signed into law, representing a turning point in crypto policy.
XRP’s surge has taken place despite the lack of closure in the Ripple-SEC case, which centers on whether XRP sales violated U.S. securities laws. Although news of settlements and payments has surfaced, the case is still dragging on due to lingering legal and procedural matters. Nevertheless, both sides now appear to be in the final stages of resolving the lengthy legal battle.
With this about to take place, investor Justin Pope points out that in the meantime, there are new openings emerging for XRP across the financial markets.
Earlier this year, CME Group – the largest financial derivatives exchange operator globally – introduced XRP futures, signaling growing institutional interest. Financial firms are also preparing to roll out XRP-based ETFs. At the same time, Ripple has submitted an application for a national banking charter, a move aimed at securing greater regulatory certainty.
“As XRP becomes more prevalent in the financial sector, banks, enterprises, and governments are more likely to use the Ripple network for cross-border transactions,” Pope opined. “Investors should look for this to play out during the next five years as the dust settles.”
However, Pope also thinks that much of the optimism surrounding XRP could already be priced in. Investors tend to be “forward-looking,” and that appears to be what’s happening with XRP now.
What’s next for XRP?
As for what will come next, Pope makes the case that “predicting cryptocurrency prices is like throwing darts.” Nevertheless, the Trump Administration’s backing of cryptocurrencies, combined with the introduction of XRP-based financial products, is a positive sign for the token. This support could lead to substantial long-term price growth, particularly if Ripple succeeds in posing a serious challenge to SWIFT’s hold on cross-border payments.
“If signs of this emerge during the next five years, I suspect that XRP could do very well from here,” says the 5-star investor. “Its market price may have gotten ahead of itself, but the reality is that it still shows more promise for real-world applications than many other cryptocurrencies.” (To watch Pope’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.