The crypto world has been buzzing with events, and among them is the Ripple Labs Inc. lawsuit with the US Securities and Exchange Commission (SEC). Ripple is the parent company behind XRP, and the asset has seen impressive sentiments as it got an inclusion in Hong Kong’s top Index.
Ripple Labs argued that XRP is a digital asset and shouldn’t be considered as a security. However, the lawsuit hasn’t hindered investors from onboarding the digital asset and taking the risk of investing in XRP. Regardless of the deep suspense amidst the Coinbase battle, XRP displays a promising future that has been backed by the top index inclusion.
SEC lawsuit between Coinbase and Ripple
The US Securities and Exchange Commission filed a lawsuit against Ripple Labs in late 2020. The lawsuit was based on Ripple selling XRP tokens as unregistered securities. However, Ripple Labs has vehemently claimed that XRP is not a security and has denied all allegations.
Moreover, the battle has heated up over the years as SEC and Ripple have engaged in intense legal battles. The lawsuit had deepened, and Ripple has even sought to access internal SEC files in order to solidify its defense. Regardless of the legal battle, it’s still evident that the lawsuit affects the crypto world and has had implications in the digital realm.
However, in a landmark decision, the SEC concluded the case against Riple, confirming it is not a security. On the other hand, the recent suspense over the lawsuit has shifted focus towards the SEC vs. Coinbase lawsuit.
Using legal channels, Coinbase forced the SEC to respond to the rulemaking petition filed in 2022. They filed a mandamus forcing the exchange commission to respond in the next 30 days, as of Friday last week. The filing states:
Coinbase’s petition for rulemaking has been pending before the SEC since July 2022. Similar petitions have languished before the agency since 2017. These petitions ask the Commission to provide its views on which digital asset products it believes are securities and why.
Court Filing
Chiefs Legal Officer Paul Grewal had comments on the matter, stating his review of the Conbase filing against the SEC in October. He exclaimed:
We’ve filed our response with the Third Circuit. […] the SEC’s unilluminating “update” is mere bureaucratic pantomime and confirms nothing short of mandamus will prompt the agency to take its obligations seriously.
Paul Grewal
The rulemaking petition calls out the SEC and forces them to share views on cryptocurrencies, as the commission also filed charges against Coinbase in mid-June 2023. However, Coinbase filed a motion to dismiss SEC charges in early August 2023.
XRP’s inclusion in the Hong Kong’s Top5 Index
Despite the XRP news headlines on the lawsuit, it’s evident that XRP investors are still confident in the digital asset. This makes it a promising asset since its price is still facing an upsurge. It recently gained a 0.35% increase in price ending at $0.4869 last week. It records a 0.48% gain from the previous day.
Additionally, this has also prompted the Hong Kong Virtual Asset Consortium (HKVAC) to spotlight XRP and even seek to include it in its virtual asset index fold. XRP secured a 6.94% share in the HKVAC Cryptocurrency Global Large Top5 Index and Equal Weight Index.
The inclusion promotes XRP into a unique league of esteemed cryptocurrencies, among BTC, ETH, and USDT, where each holds 15% shares in HKVAC. Moreover, XRP’s inclusion could promote a victory over its lawsuit against the SEC.
Considering the landmark decision, the clarification on XRP’s non-security status has established XRP as a promising investment. As such, XRP has won over the confidence of major investors, and this resulted in its inclusion in Hong Kong’s top index.
