XRP/USD: Ripple Enjoys Rally on Signs it Will Win in Fight Against SEC
- Ripple’s XRP token rose by 25% on news that it looks likely to win its case against the SEC
- Defendants of Ripple have argued that the ruling against the SEC in its case against Voyager should work in their favor.
- The final ruling could prove significant in the SEC’s belief that most cryptocurrencies are securities.
Ripple, one the industry’s older cryptocurrencies, has been embroiled in a lawsuit by the Securities and Exchange Commission (SEC) for more than 2 years – and the space has been watching closely for developments. The SEC’s case against LBRY’s LBC token sent a shiver through the spine of the crypto world, as it was ruled a security in November last year. But this week has brought signs that Ripple could be in a strong position to win its case – something which the market has taken notice of.
What’s happening with the case?
Ripple’s XRP token jumped up by more than 25% on Tuesday on what could be a positive development in its case. Defendants of Ripple drew parallels to the recent bankruptcy case of Voyager, in which the judge had dismissed the SEC’s concerns surrounding Binance purchasing its assets. They claimed that this lends validity to their argument that XRP is not a security. Another factor causing optimism in the XRP token was comments made by the judge, who US regulators seem unable to decide what criteria should be used in determining whether a cryptocurrency is a security.
What happens next?
The ruling could prove hugely influential in determining the jurisdiction the SEC has over the crypto space as a whole. Its chair, Gary Gensler has taken a firm stance on the space – reiterating his view in 2023 that everything other than Bitcoin should be considered a security.
That being said, Gensler has faced criticism for his heavy handedness as some believe a large portion of cryptocurrencies fall under the jurisdiction of the Commodities and Futures Trading Commision (CFTC). Rumors are circulating that the case has already been effectively won in Ripple’s favor, and that it’s just a matter of time before it is made official, and much of the crypto world will be watching closely for the outcome.