Ripple's XRP grows 61%

XRP Soars

[{"selector":"#anim-5527c23a-c50e-4d6d-bb80-a5556ed91feb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Ripple's XRP token witnessed an impressive 61% surge following a recent ruling in the ongoing SEC lawsuit in 13 July 2023 .

Lawsuit Background

[{"selector":"#anim-8821f63d-51db-48f1-8710-8b512b7de63a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(19.880952453334494%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Ripple, its CEO Brad Garlinghouse, and co-founder Christian Larsen faced SEC allegations of unregistered sales of $1.4 billion worth of XRP tokens.

Security Classification

[{"selector":"#anim-c68feb6a-c9e7-4eee-a2c5-fe17718043c0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] US District Judge Analisa Torres ruled that XRP is " not necessarily a security on its face ," impacting Ripple and the wider crypto industry.

Differentiating Factors

[{"selector":"#anim-3cd833ee-f6eb-4541-86c6-f36c8a366450 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The judge's decision hinged on whether XRP sales were direct to institutional investors or occurred as secondary sales on crypto exchanges.

Programmatic Sales

[{"selector":"#anim-a3dbe5b0-ebb1-41b9-820c-287aed9fab94 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Programmatic sales conducted through crypto exchanges were deemed non-investment contracts , a significant win for Ripple.

Lack of Evidence

[{"selector":"#anim-a5aa51cd-d48a-4779-936c-79d887eccd62 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(9.880952416926723%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The court highlighted the absence of evidence that less-sophisticated programmatic buyers shared similar expectations as institutional investors.

Aiding and Abetting Allegations

[{"selector":"#anim-ad2068e7-b7a2-425a-8a5a-a9dd76a5bce9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-10.489681589135486%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The SEC's motion against Garlinghouse and Larsen was denied, as it was unclear whether they knowingly violated securities laws.

Ripple's Response

[{"selector":"#anim-dec68905-71d0-4ece-a6a3-68e2c8fc5042 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-3.6904762039123895%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Garlinghouse expressed gratitude on Twitter, believing Ripple is on the right side of the law and history, supporting crypto innovation in the US.

Institutional Sale Breach

[{"selector":"#anim-585b9071-f4eb-4aa8-a4fe-22232c2febe7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The judgment concluded that the institutional sale of XRP tokens violated federal securities laws, as buyers expected to profit . Ripple sold significant XRP amounts to develop its crypto ecosystem.

Crypto Market Impact

[{"selector":"#anim-e0175e54-8fc1-4aa0-ada4-c3f6f0d6fbb8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The ruling caused excitement, with XRP's surge accompanied by gains in crypto-related stocks like Coinbase and Riot Blockchain. Ether and bitcoin also experienced notable increases. * Please note that this story should not be considered as financial advice.