The price of Ripple’s XRP cryptocurrency surged by more than 59% yesterday after a US judge ruled in favor of the company in a legal battle with the Securities and Exchange Commission (SEC).
The SEC had accused Ripple of selling XRP as an unregistered security, but the judge ruled that the agency had not adequately shown that XRP was a security. The ruling is a major victory for Ripple, and it could have significant implications for the entire cryptocurrency industry.
What Happened Yesterday?
On July 13, 2023, US District Judge Analisa Torres issued a ruling in the SEC’s lawsuit against Ripple Labs. The ruling was a partial victory for Ripple, as the judge found that the SEC had not adequately shown that XRP was a security.
The SEC had argued that XRP was a security because it was sold to investors as an investment contract. However, the judge found that the SEC had not shown that XRP investors were relying on Ripple’s promises of profits in order to make their investment decisions.
The judge also found that the SEC had not shown that XRP was a security under the Howey Test, which is a legal test that is used to determine whether an investment is a security.
The Impact on XRP’s Price
The ruling in favor of Ripple sent XRP’s price soaring. The cryptocurrency’s price rose from around $0.40 to a high of $0.75, a gain of more than 59%.
The surge in XRP’s price was likely due to a number of factors, including the positive ruling in the SEC lawsuit, the anticipation of a settlement between Ripple and the SEC, and the overall bullish sentiment in the cryptocurrency market.
The Implications for the Crypto Industry
The ruling in favor of Ripple could have significant implications for the entire cryptocurrency industry. The ruling could make it more difficult for the SEC to bring similar lawsuits against other cryptocurrency companies.
The Future of XRP
The future of XRP is uncertain. The SEC could still appeal the ruling, and the company could still face other legal challenges. However, the ruling in favor of Ripple is a major victory for the company, and it could help to pave the way for XRP’s adoption by more mainstream investors.
