Ripple vs SEC Update: Ripple’s Legal Victory Drives XRP Price Surge!

The post Ripple vs SEC Update: Ripple’s Legal Victory Drives XRP Price Surge! appeared first on Coinpedia Fintech News

Ripple Labs is on the brink of a pivotal moment in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Recent developments suggest that the SEC may not appeal Judge Torres’ recent favorable summary judgment for Ripple. Ripple executives, including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, are optimistic about the case’s resolution. However, they acknowledge the possibility of a cross-appeal if the SEC challenges specific aspects.

SEC Reassesses Crypto Asset Classification

In a significant regulatory shift, the SEC has proposed amendments to its complaint in the Binance case, signaling a broader change in how cryptocurrency assets are classified. The agency has decided to retract its previous use of the term “crypto asset securities” but continues to consider certain tokens, such as Solana (SOL) and Cardano (ADA), as securities in secondary markets. The agency’s updated position reflects a response to a U.S. district court ruling in a related case against Kraken, which challenged the SEC’s broad definitions of crypto assets as securities. 

Experts Lashes SEC’s Stance

In response to the SEC’s recent move to amend its complaint against Binance, Fred Rispoli, in his X post, labeled the agency’s investor alert as a “scam.” Rispoli criticized the SEC for using the term “crypto asset securities” in its filings, despite previously swearing to a federal judge that such a term does not exist. This argument opens many layers of the SEC’s manipulative stance on crypto assets. 

Implications of Potential SEC Appeal

Should the SEC choose to appeal and subsequently lose, it could set a binding legal precedent that might undermine the agency’s stance in future cryptocurrency cases. This potential outcome could deter the SEC from pursuing further appeals unless new evidence or clearer regulatory guidelines are introduced. Ripple’s legal team is confident that a defeat for the SEC in an appeal could weaken its regulatory approach and influence future legal battles in the crypto space.

However post the partial win in the Ripple vs SEC case, Ripple is witnessing increased regulatory clarity, highlighted by the launch of the Grayscale XRP Trust and the CME XRP Index. These developments indicate XRP’s growing integration into traditional financial systems, enhancing its legitimacy and market position.

XRP Price Surge Reflects Market Optimism

Undoubtedly, Ripple’s legal case has positively impacted XRP’s market performance. The cryptocurrency’s price has surged over 9% in the past week, trading around $0.57. Another factor that pumped the XRP price this week is the Grayscale XRP Trust opening the doors for XRP ETF. This upward trend reflects heightened investor confidence in Ripple’s legal standing and optimism about future regulatory clarity. Moreover, as Ripple’s legal and market environment stabilizes, XRP’s price is expected to reflect these positive shifts in sentiment and regulatory outlook.

Also Check Out: FTX News: Sam Bankman-Fried’s 25-Year Sentence in Jeopardy After Appeal