Ripple’s Legal Battle Hinders XRP’s Market Access: Amazon Pay Excludes XRP as a Payment Option
The legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) continues to hamper the adoption of Ripple’s associated cryptocurrency, XRP. John Deaton, Managing Partner at Deaton Law, highlights how this ongoing litigation has left a lasting impact, with one glaring example being the absence of XRP as a payment option on Amazon Pay, a platform with a vast user base exceeding 50 million.
Previously, BitPay, a specialized payment gateway for cryptocurrency transactions, allowed U.S. customers to make payments using XRP. However, this option was abruptly withdrawn after the SEC filed a lawsuit against Ripple Labs, classifying XRP as a security rather than a cryptocurrency. The resulting regulatory uncertainty forced BitPay to deprioritize XRP in favor of other digital assets such as Dogecoin and Shiba Inu. Interestingly, this situation seems ironic, given that XRP was specifically designed for payment applications, while Dogecoin originated as a meme coin.
The implications of this are significant. With 27% of U.S. digital payment users favoring Amazon Pay, the lack of XRP as a payment option means millions of customers may have missed the opportunity to experience the efficiency XRP could bring to the payment ecosystem. Deaton speculates that, if not for the SEC’s intervention, Ripple may have even had the potential to acquire stakes in prominent stablecoin firms like Circle.
While Ripple Labs has shown some legal resilience, with a partial court ruling stating that XRP is not a security, leading to its relisting on top-tier exchanges like Coinbase and Kraken, the SEC has appealed this decision. Following the court’s ruling, BitPay has reintroduced XRP as a payment option, offering global support and highlighting 28 businesses worldwide that now accept XRP through its service. However, the lawsuit’s impact continues to linger, hindering the broader acceptance and integration of XRP into mainstream payment platforms.
By adhering to regulatory guidelines and addressing the SEC’s concerns, Ripple Labs aims to restore confidence in XRP as a legitimate digital asset. The outcome of the legal battle remains uncertain, and its resolution will undoubtedly shape the future of XRP and Ripple’s role in the cryptocurrency market.
