XRP (XRP) price experienced a significant increase today following the news that Federal District Judge Analisa Torres of the Southern District of New York rejected the United States Securities and Exchange Commission’s (SEC) claim that XRP is a security. The market responded positively to the ruling, causing the price of XRP to rise by over 75% and reach a one-year high of $0.93. This development is seen as a bullish sign for XRP, which has been negatively affected by Ripple’s legal battles and concerns over its utility.
Summary Judgment in Favor of Ripple Labs
After a prolonged legal battle, United States District Judge Analisa Torres granted summary judgment in favor of Ripple Labs on three out of four issues, stating that the XRP token is not considered a security in certain circumstances. This ruling comes almost three years after the SEC filed a lawsuit against Ripple on December 22, 2022. The SEC later filed an amended complaint on February 18, 2021. The positive ruling in federal courts has been anticipated by analysts for some time, with many speculating that it would result in a substantial rally in XRP price. The market’s reaction on July 13 validated this prediction.
Positive Impact on Other Tokens
Interestingly, the ruling not only benefited XRP but also had a positive impact on other tokens. Several tokens that had recently been delisted by major exchanges due to concerns about being unregistered securities issuances also experienced rallies. XRP’s sibling token, Stellar (XLM), followed in Ripple’s footsteps and surged by over 70% to reach a near nine-month high of $0.19.
Implications for the SEC
As a consequence of the SEC’s loss in the Ripple case, some analysts are questioning the viability of the SEC’s other enforcement actions against cryptocurrency-focused companies. They argue that this ruling could hinder the SEC’s longstanding resistance to approving a spot Bitcoin exchange-traded fund (ETF). The outcome of the Ripple case has raised doubts about the SEC’s ability to regulate the crypto industry effectively.
XRP has demonstrated significant growth this year, with a 136% increase year-to-date. Although the altcoin is still far from its all-time high of $3.40, the victory against the SEC marks a potential turning point for XRP. Today’s ruling could potentially set the stage for a longer-term recovery for the cryptocurrency.
Overall, the ruling in favor of Ripple in its legal battle against the SEC has had a profound impact on the price of XRP. Market participants have interpreted the decision as a positive signal for the future of XRP and other cryptocurrencies. The ruling not only boosts XRP’s price but also raises questions about the SEC’s enforcement actions and its resistance to approving a Bitcoin ETF. This victory against the SEC may be a pivotal moment for XRP and could pave the way for its resurgence in the crypto market.