In a groundbreaking ruling, Judge Analisa Torres declared that XRP, the digital currency associated with Ripple Labs, should not be considered a security, marking a significant victory for Ripple in its ongoing legal battle against the US Securities and Exchange Commission (SEC). This decision has sent shockwaves through the crypto industry, leading to a remarkable surge in the value of XRP, with a staggering 67% increase in the past 24 hours.
The court's ruling affirms that Ripple did not violate federal securities law by trading its XRP token on public exchanges. While Ripple celebrates this win, it is important to note that the court recognized the company's direct sales of XRP to institutional clients as unregistered sales of securities. The SEC intends to appeal the ruling and pursue further action against these institutional sales.
Expressing his enthusiasm on Twitter, Ripple's CEO, Brad Garlinghouse, hailed the ruling as a testament to Ripple being compliant with both the law and history. Stuart Alderoty, the company's Chief Legal Officer, clarified that the court's decision validates XRP as a non-security, legitimizing its trading on exchanges and other distribution channels.
The favorable outcome of the lawsuit has triggered a rapid increase in XRP's price. Currently valued at $0.7892, XRP has experienced an astounding surge of 67.27% compared to the previous day. Furthermore, XRP's market capitalization has significantly risen, securing its position as the fourth-largest cryptocurrency by market cap, currently standing at $41.46 billion. This surge in value has prompted renowned exchanges such as Coinbase and Binance US to restore XRP listings, allowing users to trade the cryptocurrency once again.
Coinbase, which delisted XRP in January 2021 following the SEC's indictment against Ripple, celebrated the legal victory by publicly announcing the reinstatement of XRP. The decision to relist XRP comes after Ripple's community resubmitted a proposal highlighting the SEC's ruling that secondary market sales should not be considered securities. The relisting of XRP on major exchanges signifies a positive turn for Ripple and the entire crypto industry.
Meanwhile, Congressman Ritchie Torres has called for independent investigations into the SEC's approach to digital assets. In letters addressed to the SEC's Inspector General Deborah Jeffrey and the Government Accountability Office's Comptroller General Gene Dodaro, Rep. Torres expressed concerns regarding the SEC's alleged politicization of the registration process and its failure to establish a robust framework for registering real-world digital asset platforms. Torres criticized the SEC's handling of digital assets as "haphazard and heavy-handed," emphasizing the need for a more transparent and effective regulatory approach.
Ripple's legal triumph and the subsequent restoration of XRP listings on major exchanges mark a significant milestone for the cryptocurrency industry. As the community celebrates this victory, the outcome of Ripple's lawsuit and the investigations called for by Congressman Torres will likely have far-reaching implications for the regulation and adoption of digital assets in the United States.
