A Brief Overview
- Ripple achieves partial victory in case against Sec
- Institutional sales were unlawful, but programmatic sales were acceptable.
- Prices of various altcoins surged upwards.
The legal battle between Ripple and SEC garnered widespread attention within the cryptocurrency community, as its outcome could set a precedent for the classification of digital assets and determine the future for many other altcoins.
On July 13, 2023, United States Southern District Court of New York Judge Analisa Torres ruled that the company’s sale of XRP tokens on public exchanges did not violate federal securities law, providing the cryptocurrency industry with a glimmer of regulatory clarity. The news of the ruling sparked a surge in XRP’s price, from the demand zone of $0.47 to approximately $0.90 before retracing and stabilizing at $0.79. The ruling also had a positive impact on other cryptocurrencies, with Cardano and Litecoin surging by approximately 18% and 20%, respectively, while Bitcoin and Ethereum gained by an average of 5%.
The majority of cryptocurrency exchanges that delisted the coin have hinted at relisting it. Paul Grewal, the chief legal officer of Coinbase, tweeted, “We’ve read Judge Torres’ nuanced ruling. We have thoroughly examined our analysis. It is time to re-register,” As of this writing, Kraken had already relisted XRP, and Gemini had indicated that it was reconsidering its earlier decision to delist the coin.
Ripple’s chief executive officer tweeted, “In December 2020, we asserted that we were on the correct side of the law and would be on the correct side of history. We are grateful to everyone who contributed to today’s decision, which is favorable to all crypto innovation in the United States. More to come.”
While some analysts believe that the ruling will help build a defense for other crypto firms confronting the SEC over similar allegations, it is highly probable that it will be quite some time before the industry obtains closure over the entire matter. By stating that Ripple violated federal securities law by selling approximately $728.9 million worth of XRP directly to institutional investors, Judge Analisa Torres appeared to grant the SEC a partial victory too. A spokesperson for the SEC stated that the regulator was examining the decision. Some experts believe an appeal may be imminent.
The dual nature of Judge Torres’ ruling underscores the complexity of this matter. The entire cryptocurrency community anxiously awaits the next chapter of this high-stakes saga as the dust settles and both parties assess their next moves. At dappGambl, we will keep you updated as the events unfold.
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