After a U.S. judge determined XRP is not a security, the price of XRP has risen 96% within 24 hours. He mentioned that the selling of XRP tokens on platforms wasn’t considered an investment contract. As a result, XRP emerged as the biggest beneficiary of the event.
By CryptoWatch statistics, XRP reached as high as 93.8 cents, the highest value since March 2022, before stabilizing at 81 cents at the moment of writing.
The cost movement occurs after the federal court for the Southern District of New York ruled that the “provide and sell of XRP on exchanges for digital assets were not equivalent to offers and sales of investment agreements,” because “the evidence cannot prove the third Howey prong to these activities.”
Ripple’s Long Wat to Judge Declaring ‘XRP is Not a Security
On July 13, Ripple Labs won a partial success in the United States District Court for the Southern District of New York, when Judge Analisa Torres decided in the company’s favor in a dispute filed forward by the Securities and Exchange Commission reaching back to 2020.
According to court records posted on July 13, Judge Torres awarded summary judgment in favor of Ripple Labs, stating that the XRP currency is not a security safe for automated sales on digital asset platforms.
Fortunately, the SEC scored an advantage of its own when a federal court judge declared that XRP is a security when offered to institutional investors because it meets the standards laid forth in the Howey Test.
The SEC lawsuit attempted to get Ripple to discontinue trading its XRP coin because it was an investment and needed further supervision.
The SEC’s lawsuit against Ripple and its two main executives, Brad Garlinghouse and Chris Larsen, has been underway since December 2020, when the SEC accused the business of issuing a security that was not registered.
The investigation has had a good deal of exciting suspense over the last three years, including the emergence of the “Hinman Documents” and Garlinghouse’s continued resistance regarding the SEC’s claims.
Along with the unexpected movement seen by the XRP coin price hiking on the news, the overall emotion in the crypto community looks to be one of joy.
The Raise Of XRP Price
Ripple Labs has noticed hope at the end of the tunnel after a three-year legal struggle with the SEC. The SEC filed Ripple in 2020 for violating US securities law by selling the cryptocurrency without first registering it as a security.
This resulted in a significant drop in XRP prices. Since then, XRP has traded in a much narrower range than its all-time high of over $3. This appears to be altering as of yesterday (13th July 2023), when a Judge in the Southern District of New York granted Ripple beneficial rules.
Following yesterday’s groundbreaking ruling when a judge declared ‘XRP is not a security’, not just Ripple but also numerous other Altcoins witnessed significant rises. Cardano, Solana, and Polygon all gained 25%, 33%, and 19% in the last 24 hours, correspondingly. Coinbase, which had previously removed XRP, has relisted it, according to a tweet on Thursday.
Coinbase, a publicly traded cryptocurrency exchange, had a 24% increase in its stock price yesterday following the XRP verdict.
The panel’s choice to not classify XRP as a security is a significant victory for the industry. This might have ramifications for several other coins that are now under SEC review.
- xCurrent- a bank-focused payment platform
- xRapid- liquidity source through XRP
- xVia- enables clients to link and integrate the preceding two services through its application programming interface (API) – a collection of tools for developing application software.
Ripple employs the inter-ledger norm, a blockchain protocol that connects the ledgers of two or more banks, eliminating middlemen and centralized oversight from the system. The inter-ledger, like the internet TCP/IP protocol, allows various systems and devices to interact with one another, decreasing expenses and the lengthy procedure for current cross-border transactions.
The winning of the Ripple case against the SEC has a huge impact on the crypto market. After a US judge declared XRP is not a security, the crypto has achieved a new price hike over three years. Many people think it is a positive sign for a bull run.