- SEC terrified that XRP would implode without Ripple support, questioning decentralization
- Internal communications also underscored stability issues for Ripple, particularly versus the network of Bitcoin.
- XRP’s market rose with a 15% jump in active addresses corresponding with Ripple’s legal victory.
Ripple’s long-running legal battle with the U.S. SEC ended on its side. However, internal emails from 2021 reveal deeper concerns within the agency. The SEC once considered consulting blockchain experts to assess XRP’s fate if Ripple exited, raising questions about the network’s decentralization and long-term resilience.
Internal Debate over XRP’s Stability Intensifies
As Eleanor Terrett posted, a 2021 SEC email implied that employees had concerns that XRP would fold without Ripple’s backing. Discussion rested on how much that could be sustained on its own, particularly when compared to decentralized networks like Bitcoin. The internal discussion illustrates how regulators perceived the fact that Ripple depended on Ripple as being a considerable weakness.
Newly obtained documents via a Freedom of Information Act (FOIA) request by Coinbase offer insight into these concerns. The SEC’s internal communications reveal a rigorous review of crypto asset stability.
In a single email, SEC regulators even warned of the demise of blockchain’s future were Ripple to “walk away” or “vanish”revealing rare behind-the-scenes concern about XRP’s structural independence. At the time, the SEC was actively pursuing Ripple over allegations of offering Ripple as an unregistered security.
XRP’s Price Outlook: Neutral-to-Bullish Indicators
Although Ripple later triumphed in court, the unearthed messages indicate that regulators weren’t confident in Ripple’s decentralization. Ripple not only beat the lawsuit but also reclaimed some previously imposed penalties. Despite this, doubts over XRP’s foundation and sustainability linger, posing future regulatory risks for the token.
This latest disclosure is part of Coinbase’s wider disclosure campaign. Dozens of SEC emails were released as part of Coinbase’s legal battle with the agency. Those disclosures are stoking new market attention on regulatory plans toward crypto assets, particularly those along the utility/security border like Ripple.
Technical charts favored a neutral-to-bullish view. The price of Ripple circled its 50-day average of $0.525 with an RSI of 53. On-chain statistics registered a 15% surge in active addresses at 47,000.
Institutional capital rotation appears underway. As equities remain tepid, traders watch altcoin trading pairs like XRP/ETH, which saw a 10% volume rise to $85 million. If Ripple continues gaining regulatory clarity, it could uplift sentiment across altcoins and blockchain-linked stocks, offering multi-market trading opportunities.