The judge presiding over the case between Ripple and the Securities and Exchange Commission (SEC) has said that Ripple’s programmatic sales of the XRP cryptocurrency were not investment contracts.
Following the release of the latest documents, the markets interpreted them extremely positively, with the price of XRP rising by around 30% in the last 24 hours.
The XRP price, which was around $0.47 at 3:20 p.m. UTC, jumped up to $0.61 at 4:12 p.m. UTC. This kind of price increase is particularly impressive given that XRP is one of the largest cryptocurrencies in the market, with a market capitalization of $31.6 billion.
(DB) Ripple sales of XRP not offer of investment contracts: judge
— database (@tier10k) July 13, 2023
This development means that major exchanges such as Coinbase, which removed XRP from the list as a precaution, are more likely to list the popular cryptocurrency.
The latest development is a continuation of an intense legal battle between Ripple and the SEC, which began in December 2020. So far, Ripple appears to have been quite successful in defending its position that XRP is not a security and that the Company’s sales of XRP did not constitute an offering of securities.
As the judge declined to grant summary judgment, the matter will now go to trial, the date of which is not yet known.
The precedent set by this case could also work in favor of other top cryptocurrencies, many of which are securities according to the SEC. In addition to the price surge displayed by XRP, we also saw notable price surges of cryptocurrencies such as Stellar (+12%), Solana (+10%) and Cardano (+9.5%).
