XRP (XRP) price experienced a significant surge after Federal District Judge Analisa Torres of the Southern District of New York ruled against the United States Securities and Exchange Commission’s (SEC) claim that XRP is a security. The ruling sparked a surge of over 75% in XRP price, reaching a one-year high of $0.93. Market participants interpreted the ruling as a positive sign for XRP, highlighting the bullish sentiment surrounding the cryptocurrency.
Ripple’s Legal Battle and Concerns Over XRP’s Utility
Ripple has been embroiled in a long-standing legal battle, facing scrutiny from various courts and concerns regarding the utility of its native cryptocurrency, XRP. These factors have negatively impacted the price of XRP. Analysts have speculated for over a year that a favorable ruling in federal courts would lead to a significant rally in XRP price. The recent ruling by Judge Analisa Torres validated these expectations, resulting in the notable surge on July 13.
The lawsuit filed by the SEC against Ripple dates back nearly three years to December 22, 2022. Subsequently, an amended complaint was filed on February 18, 2021. The recent ruling granted summary judgment in favor of Ripple Labs on three out of four issues, asserting that, under certain circumstances, XRP is not a security. This ruling has brought some clarity to the regulatory status of XRP.
Impact on Other Tokens and SEC’s Enforcement Actions
Interestingly, the court ruling not only had a positive effect on XRP but also influenced other tokens that faced delisting from major exchanges due to concerns about being unregistered securities issuances. XRP’s sibling token, Stellar (XLM), followed suit and experienced a rally of over 70%, reaching a near nine-month high of $0.19. This demonstrates the broader impact of the ruling on the cryptocurrency market.
The SEC’s loss against Ripple has raised questions about the viability of its enforcement actions against other crypto-focused companies. Some analysts argue that this ruling may impede the SEC’s resistance to approving a spot Bitcoin exchange-traded fund (ETF) and could potentially lead to a shift in the regulator’s approach to the cryptocurrency industry.
While XRP has seen a year-to-date gain of 136%, it remains significantly below its all-time high of $3.40. However, the victory against the SEC in this case could mark the beginning of a potential long-term turnaround for XRP. The ruling has provided a positive outlook for XRP’s future performance and has instilled confidence among investors.
In summary, the recent court ruling in favor of Ripple against the SEC’s claim that XRP is a security has led to a significant surge in XRP price. This ruling not only affects XRP but also has implications for other tokens, such as Stellar. Furthermore, it raises doubts about the SEC’s enforcement actions against crypto-focused companies and could potentially impact the regulator’s stance on approving a Bitcoin ETF. Despite XRP’s current price being far from its all-time high, this legal victory may signal a positive trend for the cryptocurrency’s future.