MoneyGram has announced that it's severing ties with Ripple Labs, for the time being, citing fears of regulatory uncertainty.
Ripple is currently facing legal action from the U.S. Securities and Exchange Commission (SEC) but the organization is not quite giving up.
The startup behind its namesake XRP token is going to give it its best shot to win the upcoming SEC trial.
Recent developments signal its readiness to do just that after Ripple Labs became a LLC business in Wyoming recently.
Yet, this show of strength has not been enough to sway MoneyGram into staying, with the company arguing that it “is not planning for any benefit from Ripple market development fees in the first quarter”.
At a time when payment companies are racing head-over-heels to secure crypto payments, this is not a good sign for Ripple. XRP's price has dropped 28.19% over the past 24 hours at the time of reporting.
Ripple has been good to MoneyGram, leading to a total of $61.5m in market development fees from the currency since it was introduced in 2018. MoneyGram did explain that the measure is “temporary,” but there are no guarantees support for XRP will rally.
Much hinges on how the SEC lawsuit goes down. Under a Biden administration, Ripple Labs feels confident in its success. Enough, it seems, to register an LLC business. Ripple is still a great currency to use at your favorite casinos, including 1xBit, FortuneJack or BitStarz.
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