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The long litigation between the SEC and Ripple Labs team has gradually come to an end with the court ruling in favor of Ripple. The declaration of the judge on Thursday, that XRP is not a security against the SEC’s accusations has sent XRP prices creating new highs again. Is it the right time to buy Ripple (XRP) again? What impact will this victory have on Ripple? This work has dwelt so much on these important questions surrounding the ripple coin.
Meaning of Ripple (XRP)
Ripple is a blockchain-based payment protocol that allows for the transfer of value between two parties with greater speed and efficiency. The coin has its native cryptocurrency as XRP which facilitates transactions on the network. Ripple is designed to be a more efficient and cost-effective way of money transfers across the globe than traditional methods such as SWIFT.
Ripple’s Victory Over the SEC – XRP Surges
The long legal battle between the SEC and XRP has finally ended in favor of XRP. On Thursday, July 13, 2023, a U.S. judge ruled that Ripple Labs has not in any way violated any existing federal securities law for offering its XRP token for sale on public exchanges. This was a major victory for Ripple, and it sent the price of XRP soaring by over 80%.
Earlier in December 2020, the SEC filed a lawsuit against Ripples, alleging that its XRP coin was a security and that Ripple had illegally raised $1.3 billion by selling it. However, the judge ruled that XRP cannot be considered a security as it does not signify an investment contract. The judge also found that Ripple’s marketing of XRP did not make any promises about future profits, which is another requirement for security.
However, the SEC won a partial victory in the case, as the judge found that Ripple’s sales of XRP to hedge funds and other sophisticated investors did constitute unregistered securities sales. However, the judge ruled that a jury will need to decide whether Ripple’s executives, Brad Garlinghouse and Chris Larsen, assisted or abetted the company’s violation of the law.
The ruling has been considered a major victory for Ripple, and it could have a significant impact on the cryptocurrency industry as a whole. The SEC’s lawsuit against Ripple was one of the most high-profile cases involving cryptocurrency, and the ruling could set a precedent for how the SEC regulates other cryptocurrencies.
Notwithstanding, the future of Ripple can still be considered uncertain as the SEC could appeal the ruling, and the jury trial on the aiding and abetting allegations is still pending.
Impact of Ripple Victory over SEC on XRP
The ruling in favor of Ripple is a major boost for XRP, and it could have a significant impact on the price of the token. In the short term, the price of XRP is likely to continue to rise as investors react to the news. However, in the long term, the impact of the ruling will depend on how the SEC proceeds with its case.
If the SEC decides to appeal the ruling, it could drag the case further for several more years. This would create more uncertainty in the market, and could keep the price of XRP suppressed. However, if the SEC decides not to appeal the ruling, it could pave the way for XRP to be traded more freely in the United States. This would likely lead to a surge in demand for XRP, and it could push the price of the token even higher.
Ripple’s victory over the SEC has become an important development that will determine the way every other cryptocurrency would be considered in the future. It is therefore likely that we might see more demands for XRP on various trading platforms like Binance, Capital.com, and eToro trading brokers. Notwithstanding, investors need to manage their risks properly while investing in XRP or any other cryptocurrency in the market today.
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