While the world is on the verge of another major conflict in the Middle East, the fourth biggest cryptocurrency, Ripple (XRP), has plunged by 5% in the last 24 hours, declining from $2.24 to $2.13.
Due to a drop in on-chain activities and a massive sell-off in the cryptocurrency market, XRP’s market capitalization has also been slashed by 4.92%, according to CoinMarketCap.
On June 13, Israel launched its deadliest airstrike on Iran’s nuclear sites and some key installation sites, with more than 200 fighter jets. In this attack, Israeli forces have eliminated several military commanders, including the head of Iran’s paramilitary Revolutionary Guard, Hossein Salami, and the chief of staff of Iran’s armed forces, Mohammad Bagheri.
After this attack, Iran’s Supreme Leader, Ayatollah Ali Khamenei, vowed to retaliate.
Sina Toossi, senior fellow at the Center for International Policy, said in an interview, “A large-scale retaliation, likely involving drone and missile strikes into Israeli territory, appears imminent. rather than crippling Iran’s military and nuclear capabilities, Israel’s escalation risks fueling nationalist sentiment, solidifying internal cohesion and triggering a dangerous cycle of retaliation, all while increasing the likelihood of American entanglement.”
SEC and Ripple Labs Move to Settle Dispute
The attack on Iran has adversely impacted the global stock and cryptocurrency markets. The biggest cryptocurrency, Bitcoin (BTC), has slipped below $104,000 with around 2% drop in a day. However, BTC is currently rebounding as it surged above $105,000 at the time of writing.
Yesterday, in a latest filing in the long-running legal battle between the U.S SEC and Ripple Labs, the two parties jointly asked a Manhattan federal court to dissolve an existing injunction and release the $125 million civil penalty currently held in escrow.
According to a new court filing, the SEC and Ripple have proposed a settlement that would see $50 million paid to the regulator, with the remaining funds returned to the blockchain company.
If this happens, XRP is likely to benefit from this news as it will boost investor confidence and provide regulatory clarity.
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