The Price Of XRP Rises Amid Investor Optimism That Ripple Will Prevail In Its Legal Spat With The SEC

‍Using XRP

On Wednesday, cryptocurrency prices rose as investors gained confidence that Ripple, a business directly linked to the token, would prevail in its protracted legal dispute with the United States. Commission for Securities and Exchange.

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At roughly 8 a.m., the token was worth about 45 cents. ET has increased by more than 11% in the previous day, according to data from CoinGecko. Before, it was trading up as high as 20%.

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Traders pointed to a supplemental notice submitted by Ripple on Monday which pointed to a ruling in a separate case concerning Binance.US’ rescue plan for collapsed crypto lender Voyager Digital. Under the plan, Binance’s U.S. unit was to buy all of Voyager’s assets, including its native VGX token, in a $1.3 billion deal.

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The SEC rejected the plan, arguing VGX was akin to a security and calling Binance an unregistered securities exchange, according to the notice from Ripple.

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Traders cited a supplemental notification that Ripple had submitted on Monday, pointing to a decision in a different case involving Binance.rescue US's scheme for defunct crypto lender Voyager Digital. The transaction called for Binance's U.S. division to pay $1.3 billion to acquire all of Voyager's assets, including its proprietary VGX coin.

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According to the notice from Ripple, the SEC rejected the idea, claiming that VGX was similar to a security and that Binance was an unregistered securities exchange.

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When reached by Trade Algo, the SEC wasn't immediately available for comment.

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For offering to sell XRP without first registered it with the SEC, Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen are accused by the agency of violating US securities laws. The SEC's accusations are refuted by Ripple, which continues to hold the position that XRP belongs in the category of a digital currency instead of a security.

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President of Ripple Monica Long told Trade Algo that she was "very hopeful" about finding a solution to the SEC dispute and predicted that it would be resolved this year.

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Given that, in her opinion, "both the facts as well as the law are all on our side," Long said she believes it is "extremely improbable" that the court will find in favor of the SEC.

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For the cryptocurrency market, it might be extremely disruptive if XRP were to be recognized as a security.

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The vast majority of tokens might end up falling under the same heading, becoming regulated financial instruments requiring SEC oversight and regular transparency filings.

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Market mood is rising

Now that the final batch of briefs have been submitted, both Ripple and the SEC are requesting a summary judgment in the matter. Judge Analisa Torres of the Southern District of New York is now in charge of the case, and she is anticipated to render a decision soon.

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She hasn't decided yet, therefore it's unclear when she will. Yet, some cryptocurrency investors think a decision will be made soon.

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According to Vijay Ayyar, vice president of international at cryptocurrency exchange Luno, XRP "is being buoyed by a probable favourable decision in the SEC lawsuit," he told Trade Algo.

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According to market value, the token, which is sixth largest globally, is also benefiting from the positive outlook on the crypto market, according to Ayyar.

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Since the beginning of the year, Bitcoin has increased 70%, and it is now trading above $28,000 for the very first price in nine months. The second-largest token, ether, has increased by 50% so far this year.

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According to Ayyar, given the expectation of a stop or slowdown in interest rates and a decrease in inflation, "overall, crypto markets have gained in the previous week or so."

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Enforced Regulation?

Long from Ripple stated that she thought the SEC was regulating the industry through punishment rather than by establishing clear regulations. She said that Europe is more developed in its handling of cryptocurrency, pointing to the region's Markets in Crypto Assets law.

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As opposed to clearly establishing norms and regulations, which is what everyone in the sector wants, Long added, "We're seeing action through enforcement."

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"Europe is really establishing itself as a pioneer in establishing really clear legislation and norms that allow cyber businesses and also conventional finance to embrace crypto."

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The SEC has stated that it expects all cryptocurrency businesses and initiatives to put their activities in line with applicable federal securities laws.

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There are just a small number of tokens that have officially registered, according to SEC Chair Gary Gensler in an interview with Trade Algo following a crackdown on the cryptocurrency market Kraken. These bundled goods need to be properly disentangled by the intermediaries—the shops, if you will—and casinos where individuals are investing.

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"Time-tested regulations and laws protecting the investing public are essential if this profession is to survive and succeed."

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The government has recently targeted a number of cryptocurrency companies, claiming they are participating in illicit securities offers.

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In response to allegations that BUSD, the native stablecoin of cryptocurrency exchange Binance, was a commodity that ought to have been registered with the regulator, stablecoin issuer Paxos said the SEC slapped it with a notice threatening to take action.

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The regulator also filed charges against cryptocurrency exchange Gemini and lender Genesis, arguing that the two businesses' high-yield investment offering should have been recognized as a security.

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