cointelegraph.com
XRP (XRP) price is up today following news that Federal District Judge Analisa Torres of the Southern District of New York ruled against the United States Securities and Exchange Commission’s contention that XRP is a security.
Shortly after the ruling became public, XRP price rose 64.74% to a 1-year high of $0.77 as market participants viewed the ruling as a bullish sign for XRP.
XRP and peers rally after a favorable court ruling
Ripple’s longstanding legal battle with numerous courts and investors' lingering concerns over XRP’s utility has long weighed on the altcoin’s price. For at least a year, numerous analysts have speculated that a positive ruling in federal courts would translate to a sharp rally in XRP price, an outcome which was validated on July 13.
United States District Judge Analisa Torres of the Southern District of New York granted summary judgment in favor of Ripple Labs on 3 out of 4 issues maintaining that in certain scenarios, the XRP token is not a security.
The ruling comes nearly 3-years after the lawsuit was filed by the SEC against Ripple on Dec. 22, 2022. An amended complaint from the SEC was subsequently filed on February 18, 2021.
Interestingly, other tokens which had recently been delisted by major exchanges over concerns that they could be unregistered securities issuances also rallied.
Top gainers on the hour include $MATIC, $SOL, and $ADA -- all three were delisted by Robinhood after SEC named them securities in suits against Binance and Coinbase pic.twitter.com/ZiwNGlntVx
— Andrew T (@Blockanalia) July 13, 2023
XRP’s sibling token Stellar (XLM), also followed in Ripple’s footsteps, rallying 36.2% at the time of publishing to hit a near 9-month high at $0.13.
As a result of today’s ruling, a handful of analysts have suggested that the SEC’s loss against Ripple calls into question the viability of its other enforcement actions against crypto-focused companies. Some have even suggested that today’s ruling will hamper the SEC’s multi-year resistance to approving a spot Bitcoin ETF.
Coinbase +8% in an hour after XRP declared not a security. Market is pricing in a higher chance of Coinbase winning its case against the SEC.
— Will Clemente (@WClementeIII) July 13, 2023
Year-to-date, XRP has gained 114%, and while the altcoin is still significantly down from the all-time high of $3.40, today’s victory against the SEC could possibly be the beginning of a longer-term turnaround.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.