Ripple Labs’ native token, XRP, saw a surge of over 25% on Tuesday as investors remained optimistic about the cryptocurrency’s prospects ahead of a crucial court ruling on the Securities and Exchange Commission’s (SEC) lawsuit against Ripple which has been dragging for more than two years.
The SEC filed the lawsuit in 2020 against Ripple and two of its executives, accusing them of raising over $1.3 billion through an unregistered digital asset securities offering.Fast forward two years, and the legal battle continues with all evidence presented. The crypto sector now awaits the verdict from Judge Analisa Torres of the Southern District of New York. Stakeholders speculate on the timing of the judgment based on the judge’s prior ruling patterns, with some expecting it within days.
The outcome could have far-reaching implications for the entire cryptocurrency industry, as it will address whether the SEC has jurisdiction over cryptocurrencies and if XRP should be classified as a security or something else entirely.
The case revolves around whether XRP should be classified as a security. A ruling that designates XRP as a security would imply that all cryptocurrencies fall under the SEC’s jurisdiction, a scenario largely considered detrimental to the industry. The timeline for the New York court’s ruling remains uncertain.
Ripple’s defense, led by attorney James Filan, referenced a recent ruling by a bankruptcy judge approving the sale of Voyager Digital’s assets to Binance.US. The judge criticized regulators for failing to reach a consensus on whether cryptocurrencies are commodities or securities.
Crypto research firm Messari emphasized in a tweet that the XRP Ledger aims to offer a digital payment infrastructure not only for individuals but also for existing financial institutions, including central banks. Messari CEO Ryan Selkis expressed confidence that Ripple should win the XRP-SEC case, and the XRP Ledger should be given a fair chance to compete globally in digital payments infrastructure.
I’ve been critical of Ripple in the past (various reasons), but more aligned with them than ever before. Ripple should win the overreaching XRP-SEC case, and the XRP Ledger should be afforded the opportunity to compete fairly on digital payments infra globally. Demand is there!
Ryan Selkis
Conclusion
Its been two years and SEC has no definite answer to prove their stand. Ripple executives and attorneys are positive about the outcome once the ruling is done. However no on know till when this will in court. Ripple is one of the companies with a working product and has potential to change the world of money transactions around the world.
Suggested Reading :
Global Payment Leaders Think Crypto Brings Value – Ripple
Ripple’s (XRP crypto) Fate in Limbo as Supreme Court Fails to Address Fair Notice in Ripple Case
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