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Jul 18, 2023 13:28
Ripple Wins Case Against U.S. Securities and Exchange Commission (SEC)
The Southern District of New York ruled that sales and other distributions of Ripple's XRP token do not violate current legislation. XRP coin prices reacted positively to the outcome, increasing by 24% within just one hour.
This favorable decision for the California-based blockchain company comes after a legal process that began in 2020. The SEC's lawsuit alleged that Ripple had been selling unregistered securities in the form of XRP tokens to retail investors for seven years.
A key factor influencing the court's decision was a statement made by former SEC official William Hinman in 2018. At that time, the former director of the agency's Division of Corporation Finance asserted that Bitcoin and Ethereum were not considered securities for various reasons.
Ripple representatives expressed confidence that this legal precedent would have a positive impact on future crypto innovations in the United States.
The cryptocurrency market responded immediately, with assets in the top 10 by market capitalization transitioning into the "green zone." XRP showed the most significant growth in 24 hours (66.9%), followed by Cardano (25.4%) and Solana (32.6%). The second-largest cryptocurrency, Ethereum, surpassed the $2000 mark for the first time since May. Bitcoin also gained 3.5% within a day, breaking the $31,000 level.
However, according to the court's ruling, the distribution of coins to major players in the industry did violate U.S. securities laws. As a result, Ripple's management expressed their determination to secure a victory in the next court case.
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