• The Silicon Valley Bank collapse affected many crypto firms and caused a dip in the crypto asset market.
• Ripple CEO Brad Garlinghouse reassured investors that the company is financially stable with cash reserves from other bank partners.
• The SEC lawsuit against Ripple for the nature of its native coin, XRP, is still ongoing, with June as the deadline for verdict.
Silicon Valley Bank Collapse Affects Crypto Market
The recent collapse of Silicon Valley Bank (SVB) has had a negative impact on the cryptocurrency market. Banks such as Silvergate, Silicon Valley, and Signature have all shut down operations which has tied up funds of many firms. Top crypto companies including Coinbase, Paxos, Celsius and Circle were some of those affected by this closure due to their exposure to these banks. Consequently, several crypto assets saw a dip in prices last week due to SVB’s crash.
Ripple CEO Reassures Investors Of Financial Stability
Ripple CEO Brad Garlinghouse took to Twitter to assure investors that despite the loss of SVB they are in a strong financial position and have ample cash reserves with other bank partners in place so there will be no disruption in daily business activities. He did not disclose any details about how much money was held at SVB but his statement seemed to be well received by community members. David Schwartz also tweeted that Ripple would soon release an official statement regarding this issue. Additionally, The Federal Reserve announced it would commit about $25 billion towards ensuring stability in financial institutions affected by this crisis within the cryptocurrency market so taxpayers and users won’t need to pay for any losses incurred from SVB’s collapse.
SEC Lawsuit Against Ripple For Nature Of XRP
The Securities and Exchange Commission (SEC) currently has an ongoing case against Ripple over the nature of its native coin XRP but Garlinghouse stated that he expects it will come to an end soon with June being set as the deadline for when a verdict should be made. If after that time period nothing has been concluded then either a self-ruling will be issued or it will go on trial before a jury decides what happens next.
Effects On Cryptocurrency Market
The effects of SVB’s collapse on cryptocurrency markets remain uncertain at this point but ripple seems confident it can sustain normal operations on its network with its cash reserves from other banks providing them stability until further notice is given regarding their partnership with SVB or any updates about the SEC’s case against Ripple concerning XRP’s nature .
It remains unclear at present exactly how things will play out between Ripple and both Silicon Valley Bank and the SEC following these two events but what we do know is that both cases are ongoing and could potentially have major impacts on not only Ripple itself but also on cryptocurrency markets if left unresolved for too long into 2021..