Insights Trends XRP vs. SEC: The Landmark Fight for All Cryptocurrencies

XRP vs. SEC: The Landmark Fight for All Cryptocurrencies

July 14, 2023 Trends
BITmarkets | XRP vs. SEC: The Landmark Fight for All Cryptocurrencies

The renowned digital currency native to the Ripple project, XRP, is making headlines after securing a partial victory in its tusks with the United States Securities and Exchange Commission (SEC) in a case which dates back to 2020. Judge Analisa Torres ruled that XRP is ‘not a security’ and that not only nourished sentiment for Ripple’s token, but also for the macro realm of altcoins.

The American watchdog has been suspicious of Ripple Labs and brought forward a federal charge which alleges the company of utilizing an illegal currency, also going further to claim that Ripple illegally raised $1.8 billion through the sale of XRP tokens.

The ruling is a major victory for Ripple Labs and the cryptocurrency industry with far-reaching implications for the regulation of cryptocurrencies in the United States, and perhaps will represent a precedent for the rest of the world.

How did Ripple respond to the SEC?

Ripple Labs denied the SEC's allegations, arguing that XRP is not a security but a digital currency. The case went to trial in February 2023, and on July 12, 2023, Judge Analisa Torres ruled in favor of Ripple Labs. Torres found that the SEC had failed to adequately prove that XRP is a security, and she dismissed some of the SEC’s claims.

Ripple’s landmark fight for all altcoins

Initially in its case against Binance earlier in 2023, the SEC added 10 more cryptocurrencies into the securities classification, including renowned crypto coins such as Solana’s SOL, Cardano’s ADA and Polygon’s MATIC. A total of 68 cryptocurrencies have been deemed as securities in the eyes of the SEC, but the recent ruling would exclude XRP from that list.

This represents a major win for the cryptocurrency industry, especially that of the decentralized realm. After its lawsuit frenzy against popular cryptocurrency exchanges Binance and Coinbase earlier in the year, the SEC has increased its regulatory scrutiny in a sharp manner following the crash of once-stablecoin Terra Luna in May 2022, prior to the catastrophic collapse of FTX in November.

Regulatory pressures have become more impactful on cryptocurrency exchanges, digital asset issuers and other crypto-centric firms, and the SEC has been handed a small defeat.

XRP’s partial victory rippled across markets

The price of XRP has skyrocketed following the news, propelling to highs of nearly $0.9 in a surge which almost saw it double within a matter of hours. This rapid rise sent its market capitalization above the $42.5 billion mark which saw it soar from 7th to 4th place in the crypto ranking by market cap.

Driven by the crypto community, XRP’s trading volume catapulted by a tenfold, and it’s worthy to highlight that the number of XRP whale transactions — or wallets holding more than $100K — climbed to their highest levels in 2023.

It can be seen that the whales have took part in this massive price-pump, alongside other cryptocurrencies which witnessed a surge in trading activity and market cap as bullish sentiment spread across crypto investors and traders.


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