Ripple, the popular cryptocurrency platform, has emerged victorious in a courtroom battle against the US Securities and Exchange Commission (SEC) in a recent ruling by Judge Analisa Torres. The ruling delivered both positive and negative outcomes for both parties involved in the case.
The SEC had filed a lawsuit against Ripple Labs in December 2020, accusing the company of offering its XRP token as an unregistered security. However, the judge granted a partial summary judgment in favor of Ripple Labs, declaring that the XRP token is not a security, but only when sold on digital asset exchanges.
On the other hand, the judge did side with the SEC’s argument that XRP qualifies as a security when sold to institutional investors, based on the conditions outlined in the Howey Test. However, the determination was denied concerning institutional sales.
This legal battle has been ongoing for the past three years, with notable events such as the disclosure of the controversial “Hinman Documents” and Ripple’s executives defiantly facing the SEC’s accusations. The news of Ripple’s legal victory has sparked jubilant sentiments within the cryptocurrency community.
The outcome of this case is expected to have significant implications for the classification and regulation of digital assets in the future. Following the court ruling, several crypto exchanges have announced their plans to list the XRP token on their platforms. Coinbase, Gemini, and Bitstamp are among the exchanges that have expressed their intentions to restart or resume XRP trading.
The announcement of Ripple’s legal triumph has had an immediate impact on the price of XRP, with the token experiencing a remarkable surge from $0.45 to $0.61 in just minutes. However, it is important to note that the current price of XRP stands at $0.784617, with a trading volume of $25.03 billion over the past 24 hours. With a market capitalization of $41.00 billion and a market dominance of 3.23%, XRP continues to make its mark in the cryptocurrency market.
Overall, sentiment remains bullish for XRP, and the Fear & Greed Index indicates a value of 60, reflecting greed in the market. This legal victory for Ripple and the surge in XRP’s price highlight the growing acceptance and recognition of cryptocurrencies in the financial industry.