In a significant legal development, Ripple Labs emerged victorious in a courtroom battle against the US SEC in the Southern District of New York. The ruling, delivered by Judge Analisa Torres on July 13, delivered mixed outcomes for both parties involved.
The Securities and Exchange Commission’s (SEC) lawsuit, filed in December 2020, sought to compel Ripple to cease offering its XRP token. The allegations against Ripple claimed that the token was an unregistered security.
However, Judge Torres granted a partial summary judgment in favor of Ripple Labs, declaring that the XRP token is not a security. This verdict only pertains to the token’s programmatic sales on digital asset exchanges.
On the other hand, the judge sided with the SEC’s argument, ruling that XRP qualifies as a security when sold to institutional investors. This determination was made based on the conditions outlined in the well-known Howey Test.
Nevertheless, it was denied concerning institutional sales. This legal battle has been unfolding over the past three years, marked by notable events such as the disclosure of the controversial “Hinman Documents” and persistent defiance from Ripple’s executives in the face of the SEC’s accusations, particularly from Garlinghouse.
The news of Ripple’s legal victory has triggered a surge in the XRP token’s value, leading to jubilant sentiments within the cryptocurrency community. The case’s outcome is poised to have far-reaching implications for the classification and regulation of digital assets moving forward.
Moreover, after a court ruling, several crypto exchanges have announced their plans to list the token on their platforms. Coinbase, one of the largest cryptocurrency exchanges, stated that it would restart XRP trading if there were enough liquidity for the token.
Gemini expressed its intentions to list XRP. Bitstamp, an early adopter of XRP, promptly announced the resumption of XRP trading on its exchange, highlighting its position as a significant liquidity provider for the token globally and acknowledging Ripple’s minority stake in the exchange.
Ripple’s XRP Price Analysis
Shortly after the news was announced, the value of XRP experienced a remarkable surge, jumping from $0.45 to $0.61 in a matter of minutes. Within a matter of minutes, after the news broke, the price of XRP catapulted from $0.45 to $0.61. However, The current price of XRP stands at $0.784617, accompanied by 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. Notably, the XRP price has surged by an impressive 66.17% within the last day. As for the XRP price prediction, sentiment remains bullish, and the Fear & Greed Index indicates a value of 60, indicating greed in the market.