XRP Price has soared by more than 20% within 24 hours | XRP News | By InvestTherapy

XRP, the popular cryptocurrency, has experienced a significant surge in value, rising by over 20% in less than 24 hours. At its peak, the token reached $0.4794, its highest price since November 2022. However, at the time of writing, it had settled at US$0.4517 (Coinmarketcap).

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The cryptocurrency community has attributed this surge to the optimism surrounding Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). Rhode Island-based lawyer John Deaton, who represents the interests of 75,000 global XRP holders affected by Ripple’s SEC battle, expressed his belief that the judge is likely to rule in favor of Ripple.

Moreover, Deaton has speculated that documents relating to former SEC official William Hinman would be unsealed and revealed to the public despite the objections from the SEC and the judge’s decision. The documents relate to a speech given by Hinman in June 2018 at the Yahoo Finance All Markets Summit, where he stated that Ether was not a security. Ripple considers this speech as evidence against the SEC’s claims that Ripple is a security.

The SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020. The lawsuit alleges that Ripple and its executives violated US securities laws by offering unregistered securities through the sale of XRP tokens. Ripple allegedly raised $1.3 billion through these sales. The SEC believes that XRP should be classified as a security, and Ripple should have registered the offering with the SEC. This would have required Ripple to provide investors with the necessary disclosures and financial information.

Ripple has denied the allegations, arguing that XRP is not a security but a digital asset like Bitcoin or Ethereum. The company claims that XRP is not controlled by Ripple and functions as a decentralized currency used for cross-border payments and remittances.

The outcome of the lawsuit could have significant implications for the wider cryptocurrency industry and how digital assets are regulated in the US. The SEC has been closely monitoring the crypto industry and declared last month that crypto staking services violate security laws. The SEC’s stance forced Kraken to close its staking services.

SEC Chair Gary Gensler also argued that Ether’s move to proof-of-stake shifts it to be a security. The SEC issued a Wells notice to BUSD issuer Paxos, informing them of possible enforcement action. The notice alleges that BUSD is an unregistered security.

However, in March, the Commodity Futures Trading Commission (CFTC) stated that Ether and stablecoins should be treated as commodities. CFTC Chair Rostin Behnam believes that Ether is a commodity and should be overseen by the CFTC, a view held by the body in its complaint against FTX founder Sam Bankman-Fried in December.

“Notwithstanding a regulatory framework around stablecoins, they’re going to be commodities in my view,” Behnam said. “It was clear to our enforcement team and the commission that Tether, a stablecoin, was a commodity.”

The XRP surge is a reflection of the legal and regulatory challenges facing the crypto industry. The battle between Ripple and the SEC highlights the complex regulatory landscape in that cryptocurrencies operate in. The SEC’s classification of XRP as a security could have far-reaching implications for other cryptocurrencies, as it could signal a shift in how digital assets are regulated in the US.

The SEC’s regulatory approach to cryptocurrencies has been a topic of debate among industry players. Some argue that the SEC’s strict regulatory stance stifles innovation, while others believe that it is necessary to protect investors and prevent fraudulent activity.

In recent years, cryptocurrencies have gained mainstream acceptance, with more institutional investors and corporations investing in digital assets. However, the legal and regulatory challenges facing the industry remain significant. The ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple has attracted widespread attention from the cryptocurrency community and beyond. As XRP, the digital token associated with Ripple, surged over 20% in under 24 hours, reaching its highest price since November 2022, many analysts believe that this is a direct response to the positive anticipation surrounding Ripple’s SEC legal battle.

Rhode Island-based lawyer John Deaton, who represents the interests of 75,000 global XRP holders affected by Ripple’s ongoing SEC battle, tweeted that the judge will likely rule in favor of Ripple. Deaton also believes that documents relating to former SEC official William Hinman will be unsealed and revealed to the public, despite the SEC’s objections and the judge’s decision.

I’m hoping Judge Torres was already very aware of the ruling by Judge Wiles of the U.S. Bankruptcy Court for the Southern District of New York (same District as Judge Torres) in the Voyager Bankruptcy. @Ripple offers the ruling in further support of its fair notice defense. https://t.co/31r8ng11GS

— John E Deaton (@JohnEDeaton1) March 20, 2023

The documents relate to a speech given by Hinman in June 2018 at the Yahoo Finance All Markets Summit in which he stated Ether was not a security. Ripple considers the speech as evidence against the SEC’s claims of Ripple being a security.

SEC vs. Ripple: A Background:

In December 2020, the SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen. The lawsuit alleges that Ripple and its executives violated US securities laws by offering unregistered securities through the sale of XRP tokens. Ripple allegedly raised $1.3 billion through these sales.

The SEC believes XRP should be classified as a security and that Ripple should have therefore registered the offering with the SEC. This would have required Ripple to provide investors with the required disclosures and financial information.

Ripple denied the allegations and argues that XRP is not a security but rather a digital asset like Bitcoin or Ethereum. The company claims that XRP is not controlled by Ripple and that it functions as a decentralized currency that is used for cross-border payments and remittances.

The outcome of the lawsuit could have significant implications for the wider cryptocurrency industry and how digital assets are regulated in the US.

The Ripple Effect on the Crypto Industry:

The SEC’s actions against Ripple have been seen by many as a sign of the regulatory agency’s increasing focus on the cryptocurrency industry. The SEC has been hot on the heels of the crypto industry, with SEC Chair Gary Gensler arguing that Ether’s move to proof-of-stake shifts it to be a security.

Enforcement staff at the SEC issued to BUSD issuer Paxos a Wells notice, which the financial watchdog uses to inform companies and individuals of possible enforcement action. Its notice alleges that BUSD is unregistered security as the SEC declared that crypto staking services violate security laws.

However, at the beginning of March, the Commodity Futures Trading Commission (CFTC) stated that Ether and stablecoins should be treated as commodities. CFTC chair Rostin Behnam believes that Ether is a commodity and should be overseen by the CFTC; a view held by the body in its complaint against FTX founder Sam Bankman-Fried in December.

“Notwithstanding a regulatory framework around stablecoins, they’re going to be commodities in my view,” Behnam said. “It was clear to our enforcement team and the commission that Tether, a stablecoin, was a commodity.”

The CFTC’s position on Ether and stablecoins provides some clarity for the industry, but there is still a great deal of uncertainty surrounding how digital assets will be regulated in the US. The outcome of the SEC’s case against Ripple could have significant implications for the industry and may set a precedent for how other digital assets are classified and regulated in the US.

The Ripple Effect on Investors:

The Ripple vs. SEC legal battle has had a significant impact on investors in XRP and the wider cryptocurrency industry. The uncertainty surrounding the outcome of the case has led to a great deal of volatility in the price of XRP and other cryptocurrencies.

When the SEC first filed its lawsuit against Ripple in December 2020, the price of XRP plummeted, and many exchanges delisted the token. This led to losses for many investors who had bought XRP at a higher price. However, in recent weeks, the price of XRP has surged following bullish statements from Ripple and its supporters regarding the outcome of the case.

Investors in XRP and other cryptocurrencies are keeping a close eye on the case and its potential impact on the wider industry. Many are hopeful that a ruling in favor of Ripple could lead to greater clarity around the classification and regulation of cryptocurrencies, which could lead to more mainstream adoption of these assets.

However, others are concerned that a ruling against Ripple could have serious implications for the industry, with other cryptocurrencies potentially facing similar legal challenges. Some investors have even called for greater regulation of the cryptocurrency industry to provide more certainty and stability.

Overall, the Ripple vs. SEC case has highlighted the need for greater clarity around the regulation of cryptocurrencies. It remains to be seen what the outcome of the case will be and what impact it will have on the wider industry. However, it is clear that the case has already had a significant ripple effect on investors and the crypto market as a whole.

Conclusion:

The ongoing legal battle between Ripple and the SEC is a significant moment for the cryptocurrency industry. The outcome of the case could set a precedent for how cryptocurrencies are regulated in the US and beyond. If the judge rules in favor of Ripple, it could signal a shift in the way the SEC views cryptocurrencies and may lead to clearer guidelines around their classification and regulation.

However, if the judge rules in favor of the SEC, it could have serious implications for the wider crypto industry, with other cryptocurrencies potentially facing similar legal challenges. Whatever the outcome of the case, it is clear that the regulatory landscape for cryptocurrencies is still evolving, and it will be interesting to see how it develops in the coming years.

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