Positive Turn of Events for XRP
XRP, the digital asset linked to the blockchain firm Ripple, has experienced significant price growth following a groundbreaking ruling from a U.S Federal District Judge.
After an extended legal dispute with the U.S Securities and Exchange Commission (SEC), Judge Analisa Torres of the Southern District of New York made a decision that goes against the SEC’s assertion that XRP is a security.
The ruling, in which Judge Torres granted summary judgment in favor of Ripple Labs on 3 out of the 4 issues, maintained that in certain scenarios, the XRP token is not a security.
Changes in XRP Price
Following the news of the ruling, XRP’s price saw an impressive surge, gaining 64.74% to rise to a 1-year high of $0.77.
Market analysts and investors have deemed this ruling as a bullish indicator for the digital currency.
XRP/USDT price. Source: TradingView
The increase in XRP’s value comes as a breath of fresh air for many of its supporters, as uncertainties about the token’s use and its drawn-out legal battles have considerably weighed down its price over the years.
Analysts and market spectators have long anticipated a positive court ruling which would lead to an upward trend in XRP’s price.
Their predictions turned out to be true, with the 13th of July confirming their speculations.
Detailed Court Summary
The ruling is three years in the making, with the original lawsuit being filed by the SEC against Ripple on Dec. 22, 2022.
The SEC subsequently filed an amended complaint on February 18, 2021.
At the heart of this lawsuit was the argument over whether XRP is a security or not.
According to the ruling by Judge Torres, XRP is not a security under certain circumstances.
Impact on Other Tokens
This legal victory for XRP also had a ripple effect (pun intended) on other digital tokens.
Several tokens, such as $MATIC, $SOL, and $ADA, which had recently been delisted by major exchanges amid concerns of being unregistered securities, also experienced a surge in their prices.
XRP’s peer token, Stellar (XLM), mirrored this positive movement, rallying 36.2% to touch a near 9-month high at $0.13.
However, this significant court ruling has raised some eyebrows among market spectators.
Some suggest that the SEC’s defeat by Ripple challenges the validity of other enforcement actions that the SEC has enforced against other companies focusing on cryptocurrency.
There are also speculations that this ruling might potentially obstruct the SEC’s ongoing resistance towards the approval of a spot Bitcoin exchange-traded fund (ETF).
“Coinbase +8% in an hour after XRP declared not a security. Market is pricing in a higher chance of Coinbase winning its case against the SEC.” – Will Clemente (@WClementeIII) July 13, 2023
Cautious Optimism
This year, XRP has appreciated 114%.
Although it’s still quite a distance from its all-time high of $3.40, this legal victory over the SEC may provide some optimism, indicating the possibility of a longer-term comeback.
Nonetheless, it is worth noting that investment and trading in XRP or any other digital currency involve significant risk, and one should always undertake comprehensive research before deciding to invest.
