Since December 2020, Ripple has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC). After three years of arduous litigation, Ripple has finally achieved a "temporary" victory. According to the latest court ruling, XRP, the native cryptocurrency of Ripple, is not classified as a security within the scope of sales to retail investors through exchanges, as opposed to institutional clients. As a result, XRP does not require registration with the SEC or undergo regulatory processes similar to securities. While institutional investments in XRP are still considered securities, investors have embraced this ruling as a validation of XRP's legitimacy.
Consequently, XRP experienced a significant surge in price following the announcement of the ruling, skyrocketing from around $0.47 to $0.87, marking an over 80% increase within 24 hours. Subsequently, Coinbase announced the relisting of XRP trading pairs, which commenced today in North America. At the time of writing, the price of XRP fluctuates around $0.8 USD.
It is important to note that there is still no definitive conclusion regarding whether XRP is classified as a security. Nevertheless, this news quickly spread and is considered a major positive development for the cryptocurrency market in its resistance against the SEC. Particularly during a time when cryptocurrency platforms like Coinbase and Binance are facing SEC lawsuits, Ripple's victory is seen as a source of inspiration.
Furthermore, XRP's legal success will have a positive impact on the entire cryptocurrency market. Previously, the market experienced panic due to the SEC's lawsuit against XRP, leading to a significant downturn. As the United States' legal system serves as a model for maritime law, this XRP ruling will set a precedent for future cryptocurrency-related cases. Specifically, it demonstrates that the sale of tokens through a process does not violate securities laws and directly proves that token trading on exchanges does not violate securities regulations. This will greatly alleviate market concerns, stabilize market sentiment, and promote a healthier and more stable cryptocurrency market.
Additionally, this ruling will have a significant influence on XRP's own development. Previously, due to the SEC's lawsuit, XRP faced the risk of being prohibited from issuance, bringing considerable uncertainty to its future. However, this legal victory enables XRP to continue its issuance and makes it easier for investors to accept and utilize it, laying a solid foundation for XRP's future growth.
Lastly, it is crucial to note that while XRP's legal victory has had a positive impact on the market, it does not mean that the cryptocurrency market has completely overcome regulatory risks. The cryptocurrency market still faces regulatory pressures and uncertainties, requiring investors to remain vigilant and cautious.
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