On a day when other top coins were going higher, Ripple (XRP) experienced a significant surge of over 25%, reaching its highest value since November, 2022.
Ripple Files New Notice
The ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has yet to reach a final settlement. Nevertheless, notable developments have emerged.
Ripple’s legal team yesterday sent a Letter of Supplemental Authority to Judge Torres, citing Voyager’s case decision by Judge Michael Wiles on March 11, 2023.
By the end of February, the SEC voiced opposition to the $1 billion deal between Binance.US and Voyager. The agency claimed that the deal shows signs of violating US law in terms of investor compensation.
Voyager’s VGX token, according to the SEC’s filing, is a security. Thus partially compensating users of the lending platform is a securities offering and transfer activity.
Previously, the SEC voiced concerns about the financial viability of Binance.US. The agency mentioned that Binance might fail to pay for the deal since it had to pay a fine to the US government for past mistakes, affecting its ability.
New York Judge Michael Wiles, who was in charge of the case ruling, rejected the SEC’s attempt to charge Voyager for violating security laws. The Judge also approved the Voyager-Binance.US deal, citing there were no irregularities in the plans to sell the assets.
XRP Is Looking Up
The decision issued by Judge Michael Wiles constitutes a solid legal argument in favor of Ripple’s defense.
The judge said that the SEC didn’t provide sufficient evidence why they think VGX is a security. The judge also said that the SEC failed to give enough guidance to market participants.
Ripple used a quote from the judge’s ruling to support their argument:
“Regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC, or whether they are securities that are subject to securities laws, or neither, or even on what criteria should be applied in making the decision.
An uncertainty [that] has persisted despite the fact that cryptocurrency exchanges have been around for a number of years.”
XRP community attorney John E. Deaton said in an interview that he expected the final verdict would come by the end of April. Later decision on summary judgment could be irregular given Judge Torres’ past rulings.
Ripple Community Is Feeling Bullish
Ripple (XRP) has skyrocketed by over 25% for the last few hours. This bullish move pushed XRP’s capitalization to $23,502,057,251B. The highest capitalization that XRP has ever reached is $83.44071B.
Ripple Labs and the SEC previously agreed to extend the discovery process. The extension grants both parties more time to collect evidence and bolster their respective cases.
The outcome and timeline of the case remain uncertain up to date. However, the case holds significant potential implications for cryptocurrency and digital asset regulation within the United States.
If Ripple wins the legal battle against the SEC, it could have a significant impact on the cryptocurrency market.
One potential outcome is that it could provide more regulatory clarity for other digital assets, as Ripple’s case could set a precedent for how cryptocurrencies are regulated in the United States.
This could lead to increased adoption and investment in the industry, as investors may feel more confident that their activities are legally compliant.
Despite the recent surge in market activity, both the Ripple community and the broader cryptocurrency industry remain concerned in light of the upcoming FOMC meeting on March 22. The decision by the Federal Reserve has become a topic of intense discussion and speculation.
Following the recent financial collapses of both Silicon Valley Bank and Signature Bank (SBNY), market analysts are leaning towards the possibility of a 0.25% increase in interest rates during this upcoming round.
However, the outcome of the Fed’s decision remains unpredictable.