Majority of cryptocurrencies gained in trade after Ripple’s victory with the US SEC in court
Ripple vs The SEC Lawsuit: Majority of cryptocurrencies soared after a federal judge ruled a crypto token didn’t, in and of itself, meet the definition of a security. The largest cryptocurrency was back in green, posting some big gains. Bitcoin jumped as much as 4 per cent to hover around $31,500-mark. Its largest peer, Ethereum, outperformed and rose about 8 per cent to top $2,000-levels.
Popular altcoins like Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), and Ripple (XRP) posted robust gains in the last 24 hours. The global crypto market cap stood at 1.25 trillion, with a volume of nearly $71.3 billion in the last 24 hours. XRP rallied 64 per cent, while Solana surged 31 per cent. Cardano gained more than 25 per cent and Polygon advanced 18 per cent. Avalanche and Polkadot added 13 per cent and 10 per cent, respectively.
The judge made the ruling in a closely watched case between the Securities and Exchange Commission and Ripple Labs, the crypto company behind the XRP token. The SEC has said XRP tokens are securities that Ripple failed to register with the agency, while Ripple argued the tokens didn’t meet that standard under the law.
In the decision, the court notes that “having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong.”
“Since 2017, Ripple’s Programmatic Sales represented less than 1% of the global XRP trading volume. Therefore, the vast majority of individuals who purchased XRP from digital asset exchanges did not invest their money in Ripple at all. An Institutional Buyer knowingly purchased XRP directly from Ripple pursuant to a contract, but the economic reality is that a Programmatic Buyer stood in the same shoes as a secondary market purchaser who did not know to whom or what it was paying its money.”
“Therefore, having considered the economic reality and totality of circumstances, the Court concludes that Ripple’s Programmatic Sales of XRP did not constitute the offer and sale of investment contracts.”
The summary judgment comes after a three-year-long legal battle and could set a precedent for future token classification cases.
