Visual representation of digital cryptocurrency XRP.
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Ripple’s Ripple Tokens Soar Thursday, Southern District of New York Judge Rules “Not necessarily securities on the face of it.”
According to data from Coin Metrics, the price of XRP has recently increased by 71%, which is about 80 cents per coin. The news offers hope to cryptocurrency investors, who are relieved that other altcoins may not be considered securities after all.polygonal matic The coin is up 17.82%. Litecoin and Solana up 18.35%, Cardano’s The coin is up 20.31%. bitcoin and ether They also got a boost, rising more than 4% and 6%, respectively.
“Today’s decision is a huge step forward for the industry,” Chris Martin, director of research at Amberdata, told CNBC. “By judging that XRP is not a security, we are starting to figure out what constitutes a security and what constitutes a commodity — the SEC will Having to revise their strategy in several ongoing cases, I expect this judgment will involve multiple cases.” Other tokens as non-securities. “
Coinbase has previously delisted XRP from its trading platform, tweet On Thursday afternoon, the firm will allow the asset to trade again.Gemini explain It is “exploring XRP listings for spot and derivatives trading.”
Martin added: “Ripple’s judgment that institutional sales of XRP constitute securities has also had a huge impact on the industry, and some ICOs may now be in the spotlight.”. “For the exchanges caught up in the ongoing SEC case, it’s not clear how this judgment will affect them – they’ve mostly only been involved in secondary sales. But as we’re seeing with today’s prices , the market is very bullish on the verdict.”
Prices Soar After Judge Rules XRP Is Not a Security
The news marks the end of a three-year battle between Ripple and the SEC — although today’s ruling is that of the trial court, some of the findings are likely to be appealed and overturned. In 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, saying it violated U.S. securities laws by selling XRP without first registering with the agency.
The decision is widely seen as a key hurdle to clear in the second half of 2023, as crypto assets continue to grapple with a challenging macroeconomic environment and have been under intense pressure from U.S. regulators over the past few weeks, a lawsuit filed by the SEC said. highlights this. Against Coinbase and Binance in June.
Coinbase Shares of the company were last up more than 24% after an upbeat ruling that the company could win its battle with the SEC. Robin Hood and jamBoth offer cryptocurrency trading services, up 4.3 percent and 7 percent, respectively.bitcoin proxy micro strategy up nearly 12%. The percentage of miners soared by double digits.
complicated ruling
Investors were optimistic about Thursday’s ruling, but it wasn’t a clear victory. Stephen Palley, a partner at Brown Rudnick, said that the notion that XRP is clearly not a security is wrong.
Still, he added, “If I were an XRP holder, I’d be happy right now.”
The ruling was broken down into three groups of factual circumstances surrounding XRP sales: institutional sales, programmatic sales, and “other distributions,” such as employee compensation.
The court sided with the SEC when it came to “Ripple’s sales of XRP to established individuals and entities,” saying these were securities transactions that constituted money investments. However, when it comes to “programmatic” sales, or sales via trading algorithms, among other distribution methods, Ripple wins.
“Considering economic realities and circumstances in general, the court concluded that Ripple’s programmatic sale of XRP did not constitute an offer and sale of an investment contract” and that “other distributions” did not demonstrate an “investment in XRP.” “money” as part of a transaction or scheme,” archive explain.
Palley highlighted another important issue: whether cryptocurrency exchanges like Coinbase need to register themselves as securities exchanges. The SEC has made it clear that most traded crypto assets should be considered securities. However, Parley said that the court did not reach a conclusion on the matter, another victory for Ripple.