Analyst: Ripple SEC Lawsuit Masked US-Backed XRPL Network
Crypto analyst Pumpius alleges the Ripple SEC lawsuit was a staged distraction. He argues Ripple never fought regulators but used the case to conceal a US-backed plan to expand its XRPL network. Pumpius highlights Ripple’s partnerships with the Federal Reserve, central banks, and defense-linked banks. The analyst notes that while headlines focused on legal risks, Ripple quietly signed over 1,700 contracts with global institutions. He warns that the US intends to use XRPL and its stablecoin pilot RLUSD as foundations for a government-linked blockchain network handling both payments and identity data. According to Pumpius, Ripple’s low fees, ISO 20022 compliance, and institutional focus suggest a system built for large-scale finance rather than retail. He concludes the Ripple SEC lawsuit was never the real battle; the expansion of US-backed payment rails via XRPL was the true mission.
Bearish
Market Impact Categorization: Bearish
Explanation: The assertion that the Ripple SEC lawsuit was a deliberate smokescreen for a US-backed XRPL expansion undermines confidence in XRP’s independence. Traders value regulatory clarity; this narrative injects uncertainty around Ripple’s motivations and the token’s decentralization. Similar revelations in the past, such as alleged insider deals in major projects, prompted sell-offs as investors feared manipulation. In the short term, XRP price may face downward pressure as traders digest these claims and reassess risk. Volumes could spike on renewed selling interest. In the long term, if Ripple or regulators refute the allegations convincingly, the market could stabilize. However, persistent doubts about government control over XRPL may deter new investors and limit bullish momentum. Overall, the news adds a negative sentiment layer, likely resulting in a bearish outlook until clarity emerges.