Ripple Skyrockets: Legal Victory Sparks XRP Price Surge

Jul. 14, 2023
Ripple Skyrockets: Legal Victory Sparks XRP Price Surge

In a significant development, Ripple XRP has surged to become the fourth largest cryptocurrency by market capitalization following a favorable outcome for Ripple Labs in its legal battle against the Securities and Exchange Commission (SEC) on July 13.

As per the court filing of July 13, Judge Torres’s summary judgment in favor of Ripple Labs determined that the XRP token is not a security, specifically concerning its programmatic sales on digital asset exchanges.

Nonetheless, the SEC also secured its own victory as the federal judge ruled that XRP qualifies as a security when sold to institutional investors, meeting the conditions outlined in the Howey Test.

The objective of the SEC lawsuit was to compel Ripple to cease offering its XRP token based on the argument that XRP should be classified as a security, thus necessitating additional regulatory measures.

Ripple (XRP) Price Surge

Within hours of the court ruling, XRP’s market cap skyrocketed by an astonishing $21.2 billion, reaching a new yearly high of $46.1 billion. This propelled XRP from its 7th position, surpassing Circle’s USD Coin (USDC) and Binance’s BNB token.

Currently, Ripple’s market capitalization has stabilized at $41.5 billion. The sudden surge in XRP’s value directly responded to the District Court for the Southern District of New York ruling that the sale and offer of XRP on digital asset exchanges did not constitute the sale of investment contracts, as alleged by the SEC.

According to data from CoinMarketcap, XRP is currently trading at $0.7892, with a surge of 67.36% in 24 hours, following the announcement.

Source: CoinMarketcap

The surge in demand for XRP was so intense that U.S. crypto exchange Uphold temporarily experienced an outage due to an unprecedented spike in trading volume.

Uphold was among the few major U.S.-based exchanges that continued to offer XRP trading, while others chose to delist the cryptocurrency.

The court’s decision has also sparked renewed interest from prominent U.S. exchanges, such as Coinbase, Kraken, and iTrustCapital, which have started re-listing XRP for trading on their respective platforms.

Additionally, Gemini, the crypto exchange owned by the Winklevoss twins, has hinted at its intention to re-list XRP in the near future.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.