The recent XRP decision has triggered a remarkable price increase for Solana (SOL), MATIC, and ADA digital currencies in the blockchain sector.
Good news for the blockchain sector: Following the XRP decision, the prices of the digital currencies Solana (SOL), MATIC, and ADA increased. In particular, the latest decision affirms that the sale of XRP coins from Ripple is not regarded as an investment contract.
Following the XRP ruling, Solana (SOL), Matic, and other cryptocurrencies are continue rising
As expected, after the news of a favorable court decision respecting Ripple’s XRP, crypto assets considered unregistered securities by the US Securities and Exchanges Commission (SEC), as highlighted in the recent cases against Coinbase and Binance, witnessed double-digit surges.
We can observe that on Wednesday afternoon, Solana (SOL), Polygon (MATIC), and Cardano (ADA) all had rises of roughly 15%.
It is important to remember that the SEC vs. Ripple controversy started in 2020 when the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its executives, CEO Brad Garlinghouse and co-founder Christian Larsen, accusing them of failing to register XRP as a security prior to offering tokens worth approximately $1.3 billion.
The selling of Ripple’s XRP tokens through exchanges and algorithms did not, according to a recent decision by a US District Court judge in the Southern District of New York, constitute an investment contract.
The revelation nevertheless led to a 54% surge in XRP during afternoon trading, despite the fact that it was not a full success for Ripple because the judge also acknowledged that the institutional selling of the tokens broke federal securities regulations.
Partial triumph for Ripple over the SEC
As was already reported, a court decision that provided the cryptocurrency industry with some regulatory clarification helped Ripple in its legal struggle with the U.S. Securities and Exchange Commission (SEC).
In response to the announcement, XRP announced that it would launch on cryptocurrency market Gemini.
However, preliminary research by legal professionals indicates that the decision leaves open the issue of when a digital asset might be regarded as a security under US law.
The SEC, led by Chairman Gary Gensler, has argued that the majority of these assets are securities and that selling them to the required public requires issuers to go through an expensive and drawn-out registration process. Exchanges must also register as broker-dealers before listing them.
When applied to an asset class created on the Internet, analog laws’ vagueness is criticized by the business.
In a quick ruling, the court found in favor of the SEC’s move for summary judgment in their historic lawsuit against the blockchain platform.
Positive XRP news include: availability on Coinbase returning
Paul Grewal, Chief Legal Officer of Coinbase, declared that the moment has come to resume trading of the XRP coin as the exchange feels secure to permit it following the recent ruling in Ripple’s favor.
As is well known, the SEC launched a lawsuit against Ripple in late 2020, which led to the suspension of XRP trading on a number of US-based cryptocurrency exchanges.
On Thursday, Coinbase stated that trading “plans to begin later today” if the token’s liquidity requirements are satisfied:
Once enough of this asset is available, trading of our XRP-USD, XRP-USDT and XRP-EUR pairs will start in phases. Support for XRP may be limited in some supported jurisdictions.
The SEC is now suing Coinbase on the grounds that it was functioning as an unlicensed exchange and trading unregistered securities.
The charges were subsequently rejected by the exchange, and the matter is now in its formative stages. Legal experts are hopeful that Coinbase’s case against the SEC will be strengthened by Ripple’s triumph.
