The price of XRP (XRP) surged today following the news that Federal District Judge Annalisa Torres of the Southern District of New York ruled against the US Securities and Exchange Commission’s claim that XRP is a security.
Shortly after the ruling was announced, XRP price surged 64.74% to a one-year high of $0.77, with market participants seeing the decision as a bullish sign for XRP.
XRP and its peers rallied after a positive court ruling
Ripple’s long legal battle with various courts and investors’ ongoing concerns about XRP’s usefulness have long weighed on the altcoin’s price. For at least a year, many analysts have speculated that a favorable ruling in the federal courts could translate into a sharp rise in the price of XRP, a finding that was validated on July 13.
US District Judge Annalisa Torres of the Southern District of New York granted summary judgment in favor of Ripple Labs in 3 out of 4 cases asserting that in certain scenarios, the XRP token is not a security.
The ruling comes nearly 3 years after the lawsuit was filed by the SEC against Ripple on December 22, 2022. An amended SEC complaint was filed on February 18, 2021.
Interestingly, other tokens that were recently delisted by major exchanges due to concerns that they might be unregistered security issues have also risen.
The list of gainers includes around the clock $maticAnd one dollarAnd ADA dollars All three were delisted by Robinhood after the SEC named them securities in lawsuits against Binance and Coinbase pic.twitter.com/ZiwNGlntVx
– Andrew Tee (Blockanalia) July 13, 2023
XRP’s Stellar (XLM) token has also followed in Ripple’s footsteps, up 36.2% at press time to reach a 9-month high of $0.13.
As a result of today’s decision, a few analysts have suggested that the SEC’s loss against Ripple calls into question the viability of other enforcement action against cryptocurrency-focused companies. Some have even suggested that today’s decision will derail the SEC’s multi-year resistance to approving a Bitcoin spot ETF.
Coinbase +8% within an hour after XRP declared not a security. The market is pricing in a higher chance that Coinbase will win its case against the Securities and Exchange Commission.
– Will Clemente (WClementeIII) July 13, 2023
Year-to-date, XRP is up 114%, and while the altcoin’s price is still down significantly from its all-time high of $3.40, today’s victory over the SEC could be the beginning of a long-term turnaround.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
