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- Ripple registered a major win in its long-going battle with SEC as Judge rules that retail sales of XRP don’t constitute as securities.
- The XRP price shot 70% hours later, adding $21.2 billion to its market cap and trading volumes soar as Coinbase re-lists XRP.
Ripple’s native cryptocurrency XRP has registered a solid 70% price rally over the last few hours as the Southern District Court of New York concluded that Ripple’s sales and distributions of XRP do not constitute the offer and sale of investment contracts.
Riplpe’s long-going battle with the SEC has finally reached a conclusion and the XRP community is cheering the outcome. With the recent XRP Price rally, the cryptocurrency becomes the fourth largest cryptocurrency by market cap toppling the likes of Binance Coin (BNB).
Soon after the ruling, Ripple’s XRP added a massive $21.2 billion to its market cap taking it to the year’s high of $46.1 billion. As of press time, Ripple’s market cap has settled down to $42 billion and XRP is trading at $0.78.
Ripple vs SEC Court Ruling
On Thursday, July 13, Judge Analisa Torres ruled that the XRP token itself is not a security, however, they still need to discuss the transactions and schemes surrounding it. The Judge added:
XRP, as a digital token, is not in and of itself a contract, transaction, or scheme that embodies the Howey requirements of an investment contract. Rather, the Court examines the totality of circumstances surrounding Defendants’ different transactions and schemes involving the sale and distribution of XRP.
Note that this is still a partial victory for Ripple as the Judge noted that Ripple’s institutional sales of XRP constituted an unregistered sale of securities in violation of Section 5 of the Securities Act. Judge Analisa Torres from the Southern District of New York has decided that Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen will face a jury trial. The trial will determine whether they are responsible for selling XRP, an alleged illegal security, to institutional investors who purchased large amounts of the cryptocurrency.
The ruling, which the SEC is currently reviewing and may consider appealing, does not completely clear Ripple or its top executives from potential civil penalties or consequences.
Coinbase Relists XRP
Soon after the SEC ruling on Thursday, some of the top crypto exchanges like Coinbase and others started relisting the XRP coins once again. The official announcement from Coinbase reads:
Coinbase will re-enable trading for XRP (XRP) on the XRP network. Do not send this asset over other networks or your funds may be lost. Transfers for this asset remain available on @Coinbase & @CoinbaseExch in the regions where trading is supported.
As a result of Coinbase’s announcement, XRP experienced a remarkable increase of 72% in just 24 hours, propelling it to the fourth position in terms of market value. The network witnessed a total liquidation of approximately $237 million within a span of 12 hours, with XRP accounting for $52.34 million of that amount.
Based on data from Coingecko, Upbit, the largest exchange in South Korea, leads in the trading volume of XRP with $2.1 billion in 24 hours. Binance follows closely with $1.7 billion, and OKX holds the third position with $500 million. This highlights the significant role of Korean investors in driving the XRP pump. Additionally, Upbit also holds the top position in the trading volume of XLM and ADA, while XLM and ADA rank second and third, respectively, in terms of 24-hour trading volume.
