Ripple’s Legal Battle Ends in Triumph and Exchanges Rush to Re-list XRP
On July 14, 2023, the judge in charge of the Ripple-SEC case brought clarity to Ripple’s token sales activities and XRP’s securities status, ruling that XRP is not a security. The judge stated that the sale of XRP on exchanges is not classified as a security, except when sold to institutions. However, the ruling leaves questions about Ripple’s future sales of XRP from its reserve fund unanswered.
Main Breakdown:
- XRP is determined to be a non-security and its sale on exchanges is not classified as a security.
- Funds used for airdrops, community rewards, and project investments do not benefit Ripple directly and are not subject to securities regulations.
- Selling XRP to institutions falls under securities regulations and violates the Securities Act.
- Gary Gensler, the U.S. SEC’s Chairman, holds the power to accept the outcome or appeal the ruling.
- Exchanges like Gemini and Binance.US are rushing to re-list XRP following the ruling.
Following the ruling, XRP experienced a 90% increase in value, and other altcoins like XRM, Solana (SOL), Cardano (ADA), and Polygon (MATIC) also saw significant gains. This ruling has sparked confidence in the altcoin community and suggests that altcoins can find legal protection by navigating regulatory frameworks effectively. Bitcoin has also witnessed a rebound in value.
Hot Take:
The court ruling has brought a positive outcome for Ripple and XRP, leading to a surge in value and renewed optimism in the altcoin market. While uncertainties remain, the ruling sets a precedent for other altcoins facing regulatory challenges.
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