On July 13, 2023, Judge Analisa Torres issued a ruling in the United States Securities and Exchange Commission’s (SEC) case against Ripple Labs, determining that the programmatic sales of XRP did not meet the criteria for being considered a security.
Consequently, the ruling established that XRP is not classified as a security when sold on public exchanges, setting a significant precedent for the broader cryptocurrency market.
However, Ripple was found to have violated US securities laws by selling unregistered XRP to institutional investors
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The ruling had immediate implications for the cryptocurrency market. Following the decision, XRP’s market value surged by nearly 6%, closing at $0.4745 on July 12, 2023, and outperforming the broader crypto market.
This decision provided much-needed regulatory clarity, influencing how other cryptocurrencies might be viewed and regulated in the future.
Reflections from Ripple executives
One year later, Ripple executives Brad Garlinghouse and Stuart Alderoty reflected on the anniversary of the summary judgment. Garlinghouse, Ripple’s CEO, described the ruling as a significant victory not just for Ripple but for the entire crypto industry, which has been facing regulatory challenges from the SEC.
He emphasized that the ruling was a critical step in addressing what he termed an unlawful war waged by the SEC. Alderoty, Ripple’s Chief Legal Officer, echoed these sentiments, calling the summary judgment a watershed moment.
He asserted that the decision legally established that XRP is not a security, highlighting the SEC’s overreach and lack of faithful allegiance to the law.
According to Alderoty, the ruling has paved the way for other cases, including the SEC’s ongoing case against Binance, to recognize similar issues of regulatory overreach.
Future outlook
Investors are eagerly awaiting further developments in the SEC vs. Ripple case, with speculation about a potential settlement intensifying.
On July 12, pro-XRP investor JackTheRipple shared on X (formerly Twitter) about a meeting scheduled for July 18, 2024, to discuss settlements, resolutions to litigation claims, and enforcement proceedings.
This has fueled hopes that a remedies-related verdict could soon follow, potentially resolving a legal battle that has spanned several years.
As the cryptocurrency industry continues to evolve, the outcomes of these legal battles will likely shape the regulatory landscape and influence the future of digital assets.
The Ripple case, in particular, stands as a critical touchstone in the ongoing dialogue between regulators and the crypto community.
What’s next for XRP
Currently, XRP is demonstrating short-term bullish momentum. The immediate targets include breaching the $0.50 mark and subsequently aiming for $1
This week, XRP reclaimed the $0.50 psychological level after experiencing an 18% rally, outperforming the broader crypto market.
Additionally, trading volume has surged by 60% in the last 24 hours, indicating heightened interest among traders.
Similarly, total XRP futures open interest has increased by more than 25% to $500 million over the same period, according to the data from Coinglass.
The crypto community is closely monitoring developments related to Ripple XRP, including updates on the Ripple v. SEC case, to gauge potential price movements of the token in response to significant developments.
It is essential for investors to conduct thorough research before making investment decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
