In a landmark decision on Thursday, XRP experienced a significant surge of over 90% at one point, following a somewhat favorable ruling for Ripple by a U.S. federal judge.
In a Landmark Decision on Thursday, XRP Experienced a Significant Surge
In a landmark decision on Thursday, XRP experienced a significant surge of over 90% at one point, following a somewhat favorable ruling for Ripple by a U.S. federal judge. The token is currently up 65% over the past 24 hours, according to CoinMarketCap data.
Programmatic sales to the general public and the distribution of XRP to Ripple Labs staff members did not amount to the sale of unregistered securities, according to US district judge Analisa Torres' ruling.
The court said:
“[The] offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.”
However, the judge did decide that institutional XRP sales of $728 million did represent sales of unregistered securities.
The ruling, which concluded a long-standing legal dispute between the SEC and Ripple, has been eagerly anticipated by the crypto community. The Securities and Exchange Commission (SEC) and Ripple Labs have been in a legal dispute since 2020. The SEC claims that Ripple and two of its co-founders misled investors by generating $1.3 billion through unregistered securities sales since 2013.
The judge's decision has been interpreted as a partial victory for Ripple, and by extension, for the broader cryptocurrency industry, which has been grappling with regulatory uncertainties.
Brad Garlinghouse, CEO of Ripple, said:
"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."
The ruling boosted bullish sentiments, as altcoins that were previously deemed as securities by the SEC have seen a surge in value. Solana (SOL), Polygon (MATIC) and Cardano (ADA) have seen gains of 35%, 19.7% and 26.5% respectively. Bitcoin (BTC) is up 3.4%, while Ethereum (ETH) has broken the $2K level and is up 7% over the last 24 hours.
[This article has been updated.]
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