The SEC has dropped its lawsuit against Ripple executives and the cryptocurrency XRP. This news caused the price of XRP to rise by 7%. Ripple’s Chief Legal Officer, Stuart Alderoty, stated that this is not a settlement, but a complete surrender by the SEC.
However, it’s important to note that the matter is not entirely closed. The SEC’s complaint against Ripple involved three separate entities: XRP, Ripple, and Ripple’s executives. While XRP has been cleared of being considered a security, the lawsuit against Ripple itself is still ongoing.
The charges against Ripple executives revolve around selling XRP as an unregistered security. Although a judge ruled that XRP is not a security in its current state, it was assumed that the initial sales of XRP by Ripple were unregistered. The surrender by the SEC suggests that the hypothesis of unregistered security sales has weakened.
XRP is a cryptocurrency initially launched as part of Ripple but has since become somewhat detached. However, Ripple still owns nearly half of all existing XRP tokens. The price of XRP increased from $0.49 to $0.52 following the news of the SEC’s surrender. While this increase is significant, it is still lower than previous highs.
Solana’s SOL cryptocurrency is in a similar situation as it is associated with a company. The price of SOL rose by 14% after the SEC’s surrender, reaching its highest point in 2023. Despite this increase, SOL is still 89% below its all-time high.
In conclusion, while the SEC has surrendered in its case against Ripple executives and XRP, the lawsuit against Ripple itself is still ongoing. The impact on both cryptocurrencies remains uncertain, and there may still be potential consequences for Ripple if it is found that XRP was originally sold as an unregistered security.
Hot Take: SEC Drops Lawsuit Against Ripple and XRP Executives
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