In an unexpected turn of events, #Ripple Labs Inc celebrated a ground-breaking victory against the U.S. Securities and Exchange Commission (SEC), marking a notable milestone for the crypto industry. The U.S. District Judge Analisa Torres ruled that Ripple's sale of its XRP tokens on public exchanges did not infringe federal securities law. Following the decision, the value of XRP rocketed by 75% on Thursday afternoon, according to data from Refinitiv Eikon.
This news couldn't have come at a better time for the crypto sector. The verdict brings hope to numerous other crypto firms battling with the SEC over the regulatory jurisdiction over their products.
Meanwhile, the announcement triggered the renowned U.S. crypto exchange, Coinbase, to reopen XRP trading on its platform. Paul Grewal, Coinbase's chief legal officer, commented on the case via Twitter, stating, "We’ve read Judge Torres’ thoughtful decision. We’ve carefully reviewed our analysis. It’s time to relist." This announcement influenced Coinbase stock to surge by 24%, closing at $107 per share on Thursday.
In light of this event, #ChangpengZhao , CEO of #Binance, took to Twitter to declare, "Binance never delisted XRP." Binance, the leading player in the crypto sphere, celebrated its 6th anniversary yesterday. CZ's announcement could serve as a regretful reminder for those exchanges that chose to delist XRP in the past due to Fear, Uncertainty, and Doubt (FUD). As these developments unravel, it's clear why Binance stands at the forefront of the industry - a result of their correct decisions, resilience against FUD, and relentless effort.
Brad Garlinghouse, the CEO of Ripple, hailed the ruling as not only a significant win for Ripple but a critical triumph for the entire U.S. cryptocurrency industry.
The SEC, on the other hand, was satisfied with a part of the ruling, stating that Ripple violated federal securities law by selling XRP directly to sophisticated investors. However, the decision to appeal the ruling will be considered once the final judgment is issued.
Ripple's #XRP sales were deemed not to constitute securities under the law as there was no reasonable expectation of profit tied to Ripple's efforts. This puts other digital currencies on notice and opens the door for further discussions on token regulation.
However, the SEC did manage to score a partial win as Judge Torres deemed that Ripple's sales of XRP worth $728.9 million to hedge funds and other sophisticated buyers were unregistered securities sales.
This landmark ruling could set the tone for other legal battles between crypto companies and the SEC. Furthermore, it raises new calls for Congress to clarify the status of digital assets, which the crypto industry has been long advocating for. As Tom Emmer, the House of Representatives Majority Whip, rightly pointed out on Twitter, "a token is separate and distinct from an investment contract it may or may not be part of," and it's high time to make it law.
The development surrounding the Ripple Labs case will undoubtedly influence the course of cryptocurrency regulation in the U.S. Despite the ongoing uncertainty, one thing is clear: this ruling and its implications will reverberate through the crypto industry for years to come.
Celebrate as we may, let's remember that the crypto landscape is far from static. In the meantime, eyes remain on Ripple, and indeed, the rest of the crypto industry, as we continue to navigate these uncharted waters.