Three Causes of Soaring XRP Prices

In December 2020, the SEC sued Ripple Labs for breaching securities laws when the developer offered XRP to investors through an initial coin offering (ICO).

Ripple Labs insists the SEC failed to determine the basis for classifying XRP as a security.As a result of this case, XRP was delisted from a number of crypto exchanges. This case allegedly could pave the way for the SEC to classify digital assets as securities in the future.

Optimism about the lawsuit strengthened last week when both parties appealed to the South New York County Court for a trial decision. The application is filed when sufficient evidence is available to reach a decision without going through a trial.Second, Ripple Labs was involved in discussions with Caroline Pham, Commissioner of the US Commodity Futures Trading Commission (CFTC). The meeting is expected to encourage the decision to classify XRP as a commodity and not a security.

Crypto advocates have repeatedly argued that crypto asset classes should be regulated by the CFTC and not the SEC. Therefore, Pham's visit to Ripple Labs CEO Brad Garlinghouse boosted XRP's investor sentiment as well as confirmed the regulator's stance.Third, XRP has low energy consumption in the midst of environmental concerns. Crypto is often criticized for its impact on climate change.

Electric car company Tesla stopped accepting Bitcoin (BTC) as payment due to energy consumption issues. A number of US government officials have expressed objections to Bitcoin's consumption of proof-of-work electricity.Ripple Labs is trying to stay ahead of energy issues with the announcement of the Climate Pledge. Ripple Labs joins 375 other companies vowing to create an energy positive future.

The crypto asset market will continue to highlight energy consumption. Recently, Ethereum (ETH) successfully made the transition to proof of stake which is alleged to reduce global carbon emissions by 0.2 percent.Crypto News reports crypto assets declined, particularly BTC and ETH, following the US Central Bank's (FOMC) Policy Meeting Board meeting, but XRP prices remained strong.