A victory for Ripple and the entire crypto market, as the judge declares that XRP is not a security. XRP and the market reacted with a burst of bullish activity.
The Ripple-SEC lawsuit that has been going on since 2020 has just reached a long-awaited and important milestone. The judge presiding over the case has just ruled that XRP is not a security.
In a staggeringly positive turn of events for the digital currency ecosystem, the judge in charge of the legal case between Ripple and the US Securities and Exchange Commission (SEC), Analisa Torres, ruled Thursday in favor of the company. of Blockchain solutions.
The SEC’s lawsuit sought to force Ripple to stop offering its XRP token on the premise that XRP was a security. Ripple is not entirely out of trouble yet, as today’s ruling means there will still be another trial. Torres partially granted both sides’ motions for summary judgment, leaving the case open until a jury can rule or an agreement is reached.
“For the above reasons, the SEC’s motion for summary judgment as to the Institutional Sales is GRANTED, and otherwise DENIED,” the judge ordered. “Defendants’ motion for summary judgment is GRANTED as to the Programmatic Sales, Other Distributions, and the Larsen and Garlinghouse sales, and DENIED as to the Institutional Sales.”
The Dawn of a New Day for the Crypto Market?
The crypto market reacted positively to the news that Ripple’s XRP was not a security. The impact of the ruling was clearly evident in the subsequent price action. XRP just achieved its biggest single day price increase, indicating an overwhelming buildup.
XRP was hovering around its YTD ascending support level prior to news of the court ruling. It traded as low as $0.469 in the last 24 hours and peaked at $0.94 less than five hours after the announcement was made. In short, he was more than 100% recovered in a matter of hours.
XRP’s impressive price action certainly puts the magnitude of the court ruling into perspective. The announcement triggered a wave of demand that was preceded by a massive surge in the social domain. An increase in on-chain volumes quickly followed.
The historic ruling represented a huge step forward not only for XRP or Ripple, but for the entire crypto market in general. This is because it sets a precedent for future decisions related to cryptocurrency and blockchain projects. In other words, it will pave the way for regulatory clarity and thus potentially increase confidence in the cryptocurrency investment landscape.
The abovementioned explains why the announcement not only triggered bullish activity in XRP, but also in most major cryptocurrencies. Ripple’s big win may also open up more opportunities. The lawsuit has curbed many potential partnerships for the company due to regulatory uncertainty.
This has particularly been the case when it comes to potential partners in the banking industry. The ruling may open up new opportunities in that regard.
Is Ripple’s Victory a Sign that the Next Bull Market Has Started?
The market reaction to Ripple’s legal victory was already evidence of the importance of the ruling. More importantly, it is the latest white swan event to grace the market during a period of directional uncertainty.
XRP’s victory has already generated solid volumes, but will it be sustainable? The market now shifts its focus to spotting ETFs currently awaiting regulatory approval. Bullish demand could prevail if the ETFs are approved.
By Audy Castaneda
