Ripple Labs’ mixed outcome against the United States securities regulator is perceived as a notable setback to the regulator’s contentious approach to cryptocurrencies. Nevertheless, it’s important to remember that cryptocurrency legal experts caution this ruling does not represent an ultimate triumph for the industry. On July 13, U.S. district court Judge Analisa Torres delivered a precedent-setting judgment that XRP, at least when marketed to the general public, is not a security. This judgment spurred a wave of enthusiasm among XRP tokenholders and triggered a significant surge in the token’s price.
Repercussions for Crypto Exchanges
Prominent industry figures are applauding the decision, viewing it as a likely aid to crypto exchanges Coinbase and Binance, who are currently embroiled in lawsuits. Luke Martin, the founder of crypto investment firm Venture Coinist, observed that the essential element of the U.S. Securities and Exchange Commission’s (SEC) accusation in its lawsuits against Binance and Coinbase revolves around their alleged sale of unregistered securities on their platforms. According to Martin, the SEC’s defeat in the XRP case will significantly impact the SEC and its Chair, Gary Gensler.
Crypto Industry Perspectives
Other industry experts have similar perspectives. Pro-XRP lawyer John Deaton believes Coinbase and altcoins stand to gain from the ruling. Tyler Winklevoss, CEO of cryptocurrency exchange Gemini, expressed that this ruling substantially undermines the SEC’s case against Coinbase. His twin, Cameron Winklevoss, described the ruling as a significant turning point that would impede the SEC’s assertion of authority over cryptocurrencies.
Crypto Exchanges’ Response
Subsequent to the court’s ruling, various crypto exchanges are eager to list Ripple’s token on their platforms. Coinbase announced that it would restart trading for Ripple’s token if there’s sufficient liquidity for the token on its platform. Concurrently, Gemini expressed interest in listing the token, while Kraken confirmed that XRP trading is live on its platform for U.S. users. Bitstamp also disclosed plans to re-list the token on its exchange.
Ripple’s Token Surge
Following the announcement, the XRP token witnessed a staggering 70% surge, hitting its highest level since April of the previous year, according to CoinMarketCap data.