Positive news within the blockchain industry: after the ruling on XRP, the crypto assets Solana (SOL), MATIC, and ADA have risen.
Specifically, the recent ruling confirms that the sale of Ripple’s XRP tokens is not considered an investment contract.
Let’s look at all the details below.
Solana (SOL), Matic and other crypto assets still on the rise after XRP ruling
As anticipated, crypto assets considered unregistered securities by the US Securities and Exchanges Commission (SEC), as highlighted in the recent lawsuits against Coinbase and Binance, experienced double-digit increases after the announcement of a favorable court ruling regarding Ripple’s XRP.
In particular, we see that Solana (SOL), Polygon (MATIC), and Cardano (ADA) all experienced increases of about 15% on Wednesday afternoon.
It is worth recalling that the SEC vs Ripple affair began in 2020, when the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its executives, CEO Brad Garlinghouse and co-founder Christian Larsen, accusing them of failing to register XRP as a security before offering tokens worth about $1.3 billion.
Now, a ruling issued by a US District Court judge in the Southern District of New York has ruled that the sale of Ripple’s XRP tokens through exchanges and algorithms did not constitute an investment contract.
Although it was not a complete victory for Ripple, as the judge also acknowledged that the institutional sale of the tokens violated federal securities laws, the news nonetheless caused a 54% increase in XRP during afternoon trading.
Ripple’s partial victory against the SEC
As mentioned earlier, Ripple achieved partial success in its legal battle with the U.S. Securities and Exchange Commission (SEC), thanks to a court ruling that brought minimal regulatory clarity to the cryptocurrency industry.
The news prompted XRP to action, and cryptocurrency exchange Gemini said it intended to list the token.
However, initial analysis by legal experts suggests that the ruling does not fully resolve the question of under what circumstances a digital asset can be considered a security under US law.
The SEC, under the leadership of Chairman Gary Gensler, has argued that the bulk of these assets are securities and requires issuers to undergo an expensive and lengthy registration process before selling them to the required public, as well as exchanges to register as broker-dealers before listing them.
The industry criticizes the ambiguity of laws written during the analog era when applied to an asset class born on the Internet.
The court issued findings in an order that briefly granted a motion for summary judgment in the SEC’s landmark case against the blockchain platform.
Positive developments for XRP: available again on Coinbase
After the recent favorable decision for Ripple, Paul Grewal, Chief Legal Officer of Coinbase, announced that the time has come to resume trading of the XRP token as the exchange feels safe to allow it.
As we know, in late 2020, several US-based cryptocurrency exchanges suspended XRP trading when the SEC filed a lawsuit against Ripple.
On Thursday, Coinbase announced that trading “plans to begin later today” if liquidity conditions for the token are met:
“Once enough of this asset is available, trading of our XRP-USD, XRP-USDT and XRP-EUR pairs will start in phases. Support for XRP may be limited in some supported jurisdictions.”
Coinbase itself is currently involved in a lawsuit with the SEC alleging that the exchange was operating as an unregistered exchange trading unregistered securities.
The exchange has consequently dismissed the allegations and the case is going through the preliminary stages. Some legal commentators are optimistic that Ripple’s victory will strengthen Coinbase’s position in its lawsuit against the SEC.
Source: https://en.cryptonomist.ch/2023/07/14/xrp-ruling-pushes-up-solana-matic-other-crypto-assets/