Attorney Deaton said although XRP will be utilized as a part of Ripple’s In-principle license, XRP did not react to the news.
Pro-XRP lawyer John E. Deaton has commented on Ripple’s newly secured In-Principle approval from the Monetary Authority of Singapore (MAS).
In a tweet yesterday, attorney Deaton said the news is “fairly significant,” given that not up to 20 companies have obtained such a license from the country.
XRP Didn’t React
Notably, attorney Deaton asserted that although XRP will be utilized, the coin’s price did not react to the news. Additionally, Deaton said all XRP holders are in a common enterprise with Ripple, and relying on the company’s efforts to make gains, one would expect the XRP price to react.
However, XRP continued to follow Bitcoin as well as the macro environment, he added.
For the record, this news from @Ripple is fairly significant. Less than 20 companies have received such a license in Singapore ?? and XRP will be utilized. Yet, #XRP doesn’t move up, even a little. If all XRP holders in the ? are in a common enterprise with Ripple and relying on… https://t.co/TIakLamh0c
— John E Deaton (@JohnEDeaton1) June 22, 2023
ODL Transactions Utilize XRP
Meanwhile, Deaton’s tweet addresses all inquiries about whether the MPI license will allow ODL transactions to utilize XRP. As reported yesterday, Australian-based lawyer Bill Morgan asked Ripple’s president Monica Long whether “the license relates to ODL transactions that include XRP.”
The Australian-based lawyer claimed that not all ODL transactions use XRP. In contrast, attorney Deaton confirmed that the license would allow XRP to be utilized.
Ripple Receives In-Principle License From MAS
Recall that Ripple made headlines this week after receiving In-Principle approval for a Major Payments Institution license from the MAS. Interestingly, the blockchain behemoth joined an exclusive group of less than 20 firms that have received such a license.
The In-Principle license will enable Ripple’s subsidiary Ripple Markets Asia Pacific, to scale the On-Demand Liquidity (ODL) solution in Singapore. It is worth noting that ODL leverages XRP for cross-border settlements.
With ODL being a part of the deal, many expected the price of XRP to skyrocket immediately after Ripple’s In-Principle license announcement went viral. However, the coin did not record any significant upward movement.
Reactions to XRP Price Movement
Per CoinGecko data, XRP spiked to $0.52 from $0.50 in the early hours of yesterday. While one would think the announcement was responsible for the price surge, a closer look at most crypto assets shows that they also recorded slight gains simultaneously.
Meanwhile, the coin is currently trading around $0.49. The development has left many wondering how the SEC concluded that XRP investors are in a common enterprise with Ripple. It bears mentioning that the SEC made this claim in its case against Ripple.
It can be recalled that, in December 2020, the regulator charged Ripple with offering unregistered security, XRP. Notably, the lawsuit has been ongoing for more than two years. Aside from speculations, there is no exact date for Judge Torres to issue a summary judgment decision. Ripple expressed confidence that the case would be resolved before the end of the year.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
