A U.S. district judge’s decision that XRP was not a security has seen the token’s price surge sharply. As one of the top 25 cryptocurrencies, XRP has regained the number four spot by market capitalization, overtaking Binance’s BNB coin.
XRP, the cryptocurrency native to the Ripple payment system, has continued to perform well despite the turmoil in the crypto market. Bitcoin (BTC) and ether (ETH) are trading below their psychologically significant price levels. XRP, however, has seen its price increase by nearly 10% in the 24-hour timeframe, and an impressive 68% in the weekly timeframe. With a market capitalization of $37.8 billion, it is currently the fifth-largest cryptocurrency in circulation.
The recent ruling that XRP is not a security was a major victory for Ripple who have been fighting the U.S. Securities and Exchange Commission (SEC) over claims that the company and two of its executives made an illicit $1.3 billion in sales of XRP.
The court’s decision has far-reaching implications for the crypto industry. It may trigger discussions on more clarity in the regulatory space, boosting investor confidence and creating a more stable market. It may also influence other countries’ approaches to regulating digital assets.
Jake Boyle, Chief Commercial Officer of Australian crypto exchange Caleb & Brown, has stated that significant price changes are unlikely unless certain events transpire.
The SEC Ripple lawsuit ruling is a watershed moment for cryptocurrencies, highlighting the importance of regulatory clarity. If the court had sided with the SEC, it could have opened the door to more stringent regulations and control, with potential repercussions for any venture with an initial coin offering (ICO) or token sale, including Ripple and XRP.
