Ripple Price Soars Following US Judge Ruling In SEC Case: All You Need To Know

This ruling represents the latest development in a prolonged legal battle between Ripple and the SEC, which began three years ago.

Ripple's XRP token experienced a significant surge in value after a recent ruling by a judge in the Southern District of New York, who declared that it is not necessarily a security. This news brought hope to cryptocurrency investors, who were relieved that other alternative coins may also be exempt from being classified as securities. Following the ruling, various digital assets saw positive price movements. For instance, Polygon's MATIC token increased by 17.82 per cent, while Litecoin, Solana, and Cardano's tokens saw major gains as well. Even Bitcoin and Ethereum witnessed a boost, with their prices rising above the $31,000 and $2,000 marks, respectively.

Chris Martin, the head of research at Amberdata, described the judgment as a significant step forward for the industry, as reported by CNBC. He noted that the ruling would prompt the Securities and Exchange Commission (SEC) to reevaluate its approach to ongoing cases and likely consider other tokens as non-securities. Coinbase, which had previously removed XRP from its trading platform, announced that it would allow trading of the asset once again. Gemini also expressed its interest in exploring the listing of XRP for spot and derivatives trading.

Martin further emphasised the implications of the judgment on institutional sales of XRP by Ripple. He believed it would bring attention to several initial coin offerings (ICOs) and affect exchanges involved in ongoing SEC cases. The bullish market response to the judgment indicated optimism within the industry.

This ruling represents the latest development in a prolonged legal battle between Ripple and the SEC, which began three years ago. However, it is worth noting that the findings could be subject to appeal and potential reversal. The court has yet to set a trial date, and it is possible that some of the judgment's conclusions will be challenged.

In 2020, the SEC sued Ripple, accusing the company of violating US securities laws by selling XRP without proper registration. The recent ruling was seen as a crucial milestone for the crypto asset market, especially considering the challenging macroeconomic environment and increased regulatory pressure faced by digital assets. In June, the SEC filed lawsuits against Coinbase and Binance, making the ruling's impact on these cases a subject of interest. The positive ruling significantly boosted Coinbase's shares, with Robinhood, Block, MicroStrategy, and miners also experiencing notable increases in value.

Despite the favourable judgment, it is important to note that the question of whether XRP is unequivocally not security remains disputed. Stephen Palley, a partner at Brown Rudnick, argued against the notion and emphasised the complexity of the issue. Nevertheless, he acknowledged that XRP holders would likely be satisfied with the ruling.

The court's ruling differentiated between various circumstances surrounding the sales of XRP, including institutional sales, programmatic sales, and other distributions. While the court considered institutional sales as securities transactions, it ruled in favour of Ripple regarding programmatic sales and other distributions. Additionally, the court did not reach a conclusion on whether cryptocurrency exchanges like Coinbase should register as securities exchanges, which can be considered a win for Ripple.

Overall, the recent ruling regarding XRP's classification as security has had a significant impact on the cryptocurrency market, offering clarity on the regulatory landscape while raising important questions and considerations for the industry moving forward.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.