Ripple Labs, the company behind the XRP token, experienced a significant boost after a U.S. District Court judge ruled that XRP is not considered a security. The ruling, delivered by Judge Analisa Torres, marked the end of a three-year legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Following the verdict, XRP’s value nearly doubled, and Coinbase, the largest U.S. cryptocurrency exchange, announced it would resume trading in XRP. This decision not only benefits Ripple but also has positive implications for other crypto companies facing regulatory scrutiny.

Judge Declares XRP “Not” a Security

Judge Analisa Torres, of the U.S. District Court, reached a verdict in the case between Ripple Labs and the SEC, stating that XRP is “not” a security. The ruling came after years of legal proceedings and represents a significant victory for Ripple. The court granted the defendants’ motion for summary judgement regarding Programmatic Sales, Other Distributions, and individual sales by Ripple’s executives, but denied the motion regarding Institutional Sales. This ruling has broader implications for the cryptocurrency market, which exceeded a total value of $1.20 trillion shortly after the announcement. Bitcoin reached a trading value above $31,500, and Ethereum surpassed the $2,000 mark.

Coinbase Resumes XRP Trading

In response to the court’s decision, Coinbase, the largest cryptocurrency exchange in the United States, announced that it would resume trading of XRP. Coinbase confirmed the news on Twitter, signaling its readiness to offer XRP trading services once again. This favorable ruling for Ripple is not only significant for the company but also has positive implications for other crypto firms currently facing regulatory scrutiny, including Coinbase itself.

Additionally, Jacobi Asset Management plans to introduce Europe’s first Spot Bitcoin Exchange-Traded Fund (ETF) on the Euronext Amsterdam before the end of 2023, according to the Financial Times. This news, along with Ripple’s legal victory, has contributed to the overall positive sentiment in the cryptocurrency market. In the United States, heavyweight institutions such as BlackRock are awaiting approval for a similar ETF.

Summary

Ripple secured a significant triumph after a U.S. District Court judge ruled that the XRP token is not a security. Judge Analisa Torres issued the verdict, marking the end of a three-year legal battle with the SEC. As a result, XRP’s value nearly doubled, and Coinbase, the largest U.S. cryptocurrency exchange, announced it would resume trading in XRP. This ruling not only benefits Ripple, but it also sets a precedent for other crypto companies facing regulatory scrutiny. The decision contributes to the positive sentiment in the cryptocurrency market, which surpassed $1.20 trillion in total value.

FAQs

1. What was the ruling in the case between Ripple and the SEC?

The ruling by Judge Analisa Torres of the U.S. District Court concluded that XRP is “not” a security. This verdict marks a significant victory for Ripple.

2. How did XRP’s value respond to the ruling?

XRP almost doubled in value after the court ruled that it is not considered a security.

3. When will Coinbase resume trading in XRP?

Coinbase announced that it will resume trading in XRP following the court’s ruling.

4. What are the broader implications of this ruling on the cryptocurrency market?

The ruling not only benefits Ripple but also has positive implications for other crypto companies facing regulatory scrutiny. It sets a precedent for how cryptocurrencies may be classified in the future.

5. Are there any other significant developments in the cryptocurrency market?

Jacobi Asset Management plans to introduce Europe’s first Spot Bitcoin Exchange-Traded Fund on the Euronext Amsterdam, further enhancing the positive sentiment in the market.