SEC Chair Gensler’s Old Ripple Comments Resurface

 
Niharika Deshpande
Written By 
Niharika Deshpande
September 16, 2024

The ongoing legal battle between the U.S Securities and Exchange Commission (SEC) and Ripple Labs has taken a new turn as past comments from SEC Chair Gary Gensler resurfaced. In a 2018 interview, Gensler openly discussed XRP’s potential to serve as a bridge currency (a currency that facilitates exchange between two or more currencies and is used in international trade) between the banks, fueling speculations about the real purpose of the lawsuit. 

Gary Gensler’s take on Bridge Currency

Before the lawsuit, Gary Gensler highlighted the importance of bridge currency and how XRP could be one of those bridge currencies to make the payments happen as SWIFT transactions are not always efficient for cross-border payments and to simplify the process, a bridge currency is needed that eliminates the need of nostra s used to hold reserves in foreign banks. 

The Speculation

With these past remarks resurfacing and the lawsuit that began in 2020, the community is buzzing with questions and speculations regarding the modus operandi behind the lawsuit against Ripple. As per the speculation that has been going around, it is believed that this could be a strategic move designed to make way for XRP’s official adoption in the mainstream financial sector which will allow it to play a larger role in the global finance sector.

If Ripple becomes a widely accepted bridge currency, potential benefits can be:

  • XRP could earn fees from transactions using XRPL bridge currency, generating an alternative revenue system.
  • Increased adoption of XRP within the crypto community
  • Reduced price volatility, making it stable cryptocurrency.
  • Probability of defined regulatory guidelines to emerge that would reduce uncertainty for the XRP s.
  • Increased scope for development and partnership.
  • XRP could solidify its position in the global payment market.

The developments that have been made by XRP, and the growing need for efficient cross-border payments have led people to believe that the SEC v. Ripple case might be less about compliance and more about setting the stage for XRP adoption. If XRP does emerge as a global bridge currency, it could redefine the future of international banking.

Will XRP become the world’s bridge currency, as Gensler hinted, or will the legal battle derail its potential with the regulation compliance? Only time can tell but the signs are hard to ignore.   

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Niharika Deshpande
Written by Niharika Deshpande

Niharika has over two years of experience as a crypto-journalist and is part of the team at CryptoNewsZ. Although she holds a Master’s in Biochemistry, she has a knack for simplifying complex blockchain concepts. With a keen eye for industry trends, she delivers breaking stories and insightful analyses of the crypto world. Her articles serve as a go-to resource for those navigating crypto gambling, offering clear and well-researched insights. She also covers the latest crypto pre-sales and emerging token launches, helping investors stay informed. ionate about the evolving blockchain space, she continues to explore its impact on various sectors. Beyond journalism, she actively engages with the crypto community, fostering discussions on decentralized innovations.