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Ripple’s XRP skyrocketed by ~70% over the past 24 hours after its landmark win over the SEC. As a result of the victory, several exchanges like Coinbase, Kraken, Bitstamp, and Gemini have said that they are exploring options to relist XRP.
End of a long battle
The Southern District of New York Court delivered a partial victory to Ripple in its legal battle between Ripple Labs and the Securities and Exchange Commission (SEC). As per the ruling issued by Judge Analisa Torres on July 13, 2023, Ripple's XRP token is "not necessarily a security on its face."
The court separated Ripple's XRP sales into three categories: institutional sales, programmatic sales, and "other distributions," such as employee compensation. While the court ruled in favor of the SEC regarding XRP’s institutional sales, Ripple won when it came to programmatic sales and “other distributions.” This distinction was based on the premise that institutional investors tend to have more behind-the-scenes knowledge about token activity as compared to retail investors.
The ruling brought an end to SEC’s 3-year-long crusade against Ripple. Back in 2020, the regulator sued Ripple for its supposed breach of the US securities laws. Following the lawsuit, several exchanges like Coinbase and Kraken were forced to delist XRP to avoid facing the regulator’s wrath.
It is important to note that the SEC has the option to appeal and potentially reverse the court’s decisions down the line.
#RelistXRP Frenzy Begins
Following this monumental decision, several exchanges have announced that they will ve relisting XRP. Coinbase tweeted:
“Coinbase will re-enable trading for XRP (XRP) on the XRP network. Do not send this asset over other networks or your funds may be lost. Transfers for this asset remain available on @Coinbase & @CoinbaseExch in the regions where trading is supported.
Trading is anticipated to begin later today, if liquidity conditions are met. Once sufficient supply of this asset is established trading on our XRP-USD, XRP-USDT and XRP-EUR trading pairs will launch in phases. Support for XRP may be restricted in some supported jurisdictions.”
“Given today's ruling that the sale of XRP on exchanges is not a security, @Gemini is exploring the listing of XRP for both spot and derivatives trading.”
“Welcome back $XRP! ð XRP trading is available in the U.S now for our U.S customers. You can once again buy, sell, or trade XRP on Bitstamp USA. ð«¡”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.