March 28, 2024
Latest Cryptocurrency News

Ripple’s XRP Coin Surges After Legal Victory Against SEC

In a major victory for Ripple Labs, a judge in the United States District Court in the Southern District of New York ruled that the company’s XRP token is “not necessarily a security on its face.” The decision, handed down by Judge Analisa Torres on July 13, marks a significant milestone in the legal battle between Ripple and the Securities and Exchange Commission (SEC), which filed a lawsuit against the company in 2020.

The SEC’s lawsuit alleged that Ripple was offering an unregistered security by selling XRP and sought to compel the company to halt its XRP token offerings. However, Judge Torres’ ruling granted summary judgment in favor of Ripple Labs, stating that XRP is not a security.

The case has been a topic of intense scrutiny and speculation since December 2020 when the SEC sued Ripple and its executives, Brad Garlinghouse and Chris Larsen, over allegations of offering an unregistered security. Throughout the three-year legal battle, Ripple has remained defiant, with Garlinghouse vehemently denying the SEC’s accusations.

The news of Judge Torres’ ruling sent shockwaves through the crypto community, resulting in a surge of more than 30% for Ripple’s XRP token at one point on Thursday. The price of XRP rose by 28.90% to around 60 cents per coin, according to Coin Metrics. This development has given hope to crypto investors, who now anticipate that other altcoins may not be classified as securities, relieving them from additional regulatory burdens.

Moreover, the positive sentiment extended beyond XRP, with other cryptocurrencies also experiencing notable gains. Polygon’s Matic token saw an 11% increase, while Litecoin and the token tied to Solana jumped 8%. Cardano’s token advanced by 7%, and even Bitcoin and Ether received a boost of 2% and 3%, respectively.

Industry experts have hailed the ruling as a potential turning point for crypto regulation in the United States and globally. Elliot Han, an analyst from Cantor Fitzgerald, said to CNBC, “The outcome will no doubt have direct and indirect implications for crypto regulation here in the US and worldwide – possibly marking a major turning point, for better or for worse, for the future of crypto.” Han also noted that the decision could impact ongoing lawsuits involving major cryptocurrency exchanges such as Binance and Coinbase.

For Ripple, the ruling brings an end to a prolonged legal battle with the SEC. The company was accused of breaching US securities laws by selling XRP without registering it with the agency. The decision to classify XRP as not being a security represents a significant milestone for Ripple and may shape the future landscape of cryptocurrency regulation in the United States.

The ruling comes at a crucial time when crypto assets have faced increased scrutiny and regulatory pressure from US authorities. Despite these challenges, Judge Torres’ decision provides a glimmer of hope and relief for the crypto industry, which has been navigating through a difficult macro environment. As the dust settles on this legal victory, the implications of this ruling will undoubtedly reverberate throughout the crypto world, potentially reshaping the regulatory landscape in the months and years to come.

Image by Miloslav Hamřík from Pixabay

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