Following the announcement that Federal District Judge Analisa Torres from the Southern District of New York rejected the SEC’s claim that XRP is a security, the price of XRP has increased today.
Market investors perceived the decision as a bullish indication for XRP shortly after it was made public, which caused the price of the cryptocurrency to soar over 75% to a one-year high of $0.93.
Following a favorable court decision, XRP and its competitors are gaining ground. Investors’ ongoing doubts about the usefulness of XRP and Ripple’s protracted legal struggle in numerous courts have dragged on the altcoin’s price for a very long time. Numerous commentators have predicted for at least a year that a favorable court decision would lead to a significant price surge for XRP; this prediction was proven correct on July 13.
The Southern District of New York U.S. District Judge Analisa Torres awarded summary judgment in favor of Ripple Labs on three of the four concerns, stating that the XRP token is not a security under certain circumstances.
The SEC sued Ripple on December 22, 2022, and then on February 18, 2021, the SEC filed an amended complaint. The judgment was rendered over three years later.
It’s interesting to note that prices rose for other tokens that had recently been removed from major exchanges’ lists over worries that they might be unregistered securities. Stellar (XLM), XRP’s sibling coin, rose over 70% at the time of publication to hit an almost 9-month high of $0.19, following in Ripple’s footsteps.
A few experts have indicated that the SEC’s failure against Ripple puts into question the sustainability of its other enforcement proceedings against crypto-focused companies as a result of today’s decision. Some have even asserted that the SEC’s years-long opposition to issuing a physically-backed Bitcoin ETF will be hampered by today’s decision.
XRP has increased 136% so far this year, and while the altcoin is still far below its record high of $3.40, today’s victory over the SEC might signal the start of a longer-term trend reversal.