Today is a good day for the investors that stood in support of Ripple (XRP). Today’s increase in XRP price can be attributed to the news that Federal District Judge Analisa Torres of the Southern District of New York ruled against the SEC’s contention that XRP is a security.
The Securities and Exchange Commission claimed that XRP is a security. Following the announcement, the value of XRP rose by 64.74% to reach a 1-year high of $0.77. Investors viewed the ruling as a bullish sign for XRP.
XRP price shoots, and the bulls are happy
According to CoinMarketCap, the live XRP price today is $0.878590. The coin has a 24-hour trading volume of $6,254,371,366. XRP is up 86.48% in the last 24 hours. Ripple’s prolonged legal battle with multiple courts and investors’ residual concerns over XRP’s utility have weighed on the altcoin’s price for a considerable amount of time.
A number of analysts have speculated for at least a year that a favorable federal court ruling would result in a steep price increase for Ripple, a prediction that was confirmed on July 13.
The United States District Judge for the Southern District of New York, Analisa Torres, granted summary judgment in favor of Ripple Labs on three out of four issues, holding that the its native token is not a security in certain circumstances.
The decision comes nearly three years after the SEC filed suit against Ripple on December 22, 2022. On February 18, 2021, the SEC subsequently filed an amended complaint.
Other tokens that were recently delisted from major exchanges due to concerns that they may be unregistered securities issuances rallied as well. Stella (XLM), Ripple’s sibling coin, also followed in Ripple’s footsteps, rising 36.2% at the time of writing to a near 9-month high of $0.13.
As a result of today’s decision, a few experts have stated that the SEC’s loss against Ripple calls the SEC’s previous enforcement efforts against crypto-focused enterprises into question. Some have even speculated that today’s decision will weaken the SEC’s multi-year opposition to licensing a spot Bitcoin ETF.
Year-to-date, XRP is up 114%, and while the altcoin is still significantly below its all-time high of $3.40, today’s triumph against the SEC could mark the start of a longer-term uptrend.
What lies ahead for Ripple?
The significant victory only partially ends Ripple’s dispute with the SEC. The investment contract categorization for Programmatic Sales and other payouts has been rejected by the court. However, it did classify Ripple’s Institutional Sales of $728.9 million in XRP as an unregistered offer and sale of investment contracts, in violation of Section 5 of the Securities Act.
On the other hand, Ripple stays unfazed and determined, focused on the positive aspects of the decision.
We said in Dec 2020 that we were on the right side of the law and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
Brad Garlinghouse.
This decision represents a watershed moment in the crypto industry. Ripple’s capacity to defend the legality of its XRP sales against the SEC strengthens the market’s resilience.
As Ripple prepares for the upcoming Institutional Sales trial, the market eagerly anticipates the price trajectory of the coin in the aftermath of these legal developments.
In addition, crypto exchange Gemini stated that it is evaluating whether to list Ripple’s XRP token after a U.S. federal court ruled on Thursday that the sale of tokens on exchanges and through algorithms do not constitute investment contracts.
