From Nasdaq

May 13, 2025 5:15 AM:

Cryptocurrencies are often mined using powerful computers to validate transactions on the blockchain, earning miners new coins. XRP, however, is issued directly by Ripple, making it less decentralized. This structure raised red flags at the SEC, leading to a lawsuit settled recently under a pro-crypto administration by Trump.

Ripple developed the Ripple Payments network for instant cross-border bank transactions, reducing fees. XRP was created to standardize and lower costs for international payments. Despite its real-world use case, regulatory issues arose due to Ripple’s control over a significant supply of XRP tokens, leading to a lawsuit by the SEC.

The SEC’s case against Ripple was put on hold in April, with a settlement reducing Ripple’s fine to $50 million. While XRP has surged since Trump’s election, its future upside is uncertain. The resolution of the legal battle may not translate into sustainable growth for XRP due to its speculative nature and reliance on investor sentiment.

Before investing $1,000 in XRP, consider the potential risks and rewards. The Motley Fool Stock Advisor team recommends 10 other stocks for investment opportunities. Past recommendations have shown significant returns. XRP, while not included in their top picks, remains a speculative investment option with uncertain future growth potential.

Read more at Nasdaq: XRP (Ripple) Investors Just Received Fantastic News From the Securities and Exchange Commission