On July 13, 2023, judge Analisa Torres decided that Ripple’s programmatic sales of XRP were not securities. This decision has consequences for the market since the court agreed that XRP traded on public exchanges is not a security. Therefore, XRP’s market capitalization rose by almost 6%, trading at $0.4745 on July 12, 2023.
Ripple Ruling Shifts Views on Cryptocurrencies
The decision in the SEC’s case against Ripple Labs can be deemed rather influential. It held that Ripple had unlawfully offered and sold XRP as a security without registering it with the SEC. Nevertheless, the fact that XRP is considered non-security for public sales brought much-needed regulatory certainty.
After the decision, the value of XRP in the market increased significantly. Investors considered this a positive for the entire cryptocurrency market. This decision affected the views and policies regarding other cryptocurrencies.
Brad Garlinghouse Hails SEC Decision as Major Win
Ripple CEO Brad Garlinghouse and its General Counsel Stuart Alderoty commented on the ruling a year after the summary judgment. As Malinka mentioned, Garlinghouse, Ripple’s CEO, stated it was a big win for Ripple and the whole crypto space. He also expressed it as an important move in the effort to challenge the SEC’s unlawful actions.
Alderoty, Ripple’s Chief Legal Officer, supported Garlinghouse’s view. He termed the decision historic and expressed displeasure with the SEC’s overreach, which, according to Alderoty, led the SEC to give XRP legal clearance as a non-security.
This has a broader effect on other ongoing cases, such as the one involving the SEC and Binance. Alderoty pointed out that similar problems regarding regulation could also be identified. People are now looking forward to the further proceedings in the SEC vs. Ripple case.
XRP Targets Breakthrough Above $0.50 Price Level
On July 12, 2024, the pro-XRP investor JackTheRipple posted on X regarding a meeting set for July 18 of the same year. This meeting focuses on settlements, resolutions of the litigation claims, and enforcement actions.
These actions have raised questions regarding whether there might be a settlement in the Ripple case.
XRP is currently in a bullish trend. The token plans to break the $0.50 price level, which has risen by 16.18% within the last day. XRP recovered the $0.50 psychological level for the week with an 18% rise, thus outpacing the rest of the cryptocurrency market.
The trading volume has increased by 51% within the last 24 hours, meaning traders are more active now. Also, the total XRP futures open interest has increased by more than 25% to $500 million, according to Coinglass. The crypto community is paying much attention to the news connected with XRP.
SEC Exceeds Mandate in Ripple Ruling
The results of these legal disputes will determine the future of digital asset regulation. Thus, Ripple’s case is significant in the current discussion between regulators and the crypto industry. The ruling has clearly indicated and created a precedent for how other virtual currencies might be considered or regulated.
Garlinghouse also noted that the legal issues were critical in the ruling, which he said is a win for Ripple and the industry. Alderoty opined that the court’s decision revealed that the SEC had gone beyond its mandate and failed to exhibit faithfulness to the law.
