Ripple’s legal battle ended in triumph and upward movements have gone further as exchanges rush to re-list XRP.
July 14, 2023, was a “big bang” moment for the crypto market and the Ripple community as the judge in charge of the Ripple-SEC case brought clarity to Ripple’s token sales activities and XRP’s securities status.
XRP is Non-Security
According to the judge’s verdict, Ripple’s token XRP is not a security and the sale of the cryptocurrency on exchanges is not classified as a security.
The judge emphasized that the funds used for airdrops, community rewards, and project investments do not directly benefit Ripple Company. Therefore, these activities are not subject to securities regulations
However, the judge concluded that selling XRP to institutions falls under securities regulations. This means the company violated Section 5 of the Securities Act by offering securities.
The ruling leaves questions about Ripple’s future sales of XRP from its reserve fund unanswered. The judge’s decision does not directly address this issue, leaving room for interpretation and potential regulatory actions.
All eyes are set on Gary Gensler, the U.S. SEC’s Chairman. The regulator can opt to accept the outcome or appeal the ruling. However, appeal submission is not without risk, plus, an unfavorable outcome for the SEC could weaken future lawsuits against other cryptocurrency projects.
The SEC is busy dealing with a number of legal battles that it started. In addition to Binance and Coinbase, bankrupt crypto lender Celsius Network allegedly violated securities regulations.
In response to the court ruling that XRP is not a security, some exchanges are rushing to re-list XRP. Cryptocurrency exchange Gemini has announced its consideration of re-listing Ripple’s XRP token.
The exchange posted on Twitter:
“Given today’s ruling that the sale of XRP on exchanges is not a security, @Gemini is exploring the listing of XRP for both spot and derivatives trading.”
Gemini de-listed XRP from its platform back in December 2020, prompted by the SEC’s lawsuit against Ripple. Coinbase and Kraken, two leading exchanges, also suspended trading of XRP due to the legal uncertainties surrounding the token. These exchanges revealed its plans to re-list Ripple’s XRP token.
Binance.US, a major player in the cryptocurrency exchange space, made an exciting announcement by stating that it will reopen XRP deposits. This development allows users to once again trade XRP on the XRP/USDT trading pair starting from July 19.
Is It Altcoin Season Yet?
XRP, the talk of the town, skyrocketed by 90% following the landmark ruling. The cryptocurrency is hovering at $0,78 in the last 12 hours. Following XRP, XRM has demonstrated an impressive gain.
The altcoin market is ablaze with excitement as numerous prominent cryptocurrencies experience significant gains. Notably, Solana (SOL), Cardano (ADA), and Polygon (MATIC) have surged by an impressive 15% to 20% in value.
These three coins have been under pressure as the SEC previously classified them as securities, leading to their suspension on major crypto exchanges. However, their recent upward movements indicate a potential positive shift in their regulatory status and market sentiment.
The recent court ruling has sparked confidence and optimism within the altcoin community. It signifies that altcoins, regardless of their degree of centralization, can find legal protection by effectively navigating regulatory frameworks.
Bitcoin has also witnessed a resurgence. After a period of consolidation around the $30,000 mark, the flagship cryptocurrency recently experienced a rebound, pushing its value to the $31,700 range.
Market observers are eagerly anticipating the onset of a new altcoin season. However, amidst the excitement, uncertainties surrounding global economic conditions, regulatory developments, and geopolitical factors could introduce volatility and unpredictability into the cryptocurrency landscape.
Regardless, XRP now has a bright future, and the SEC has lost its case.