Cryptos Supported after Ripple Scored a Victory against the SEC
Ripple Legal Victory
The US Securities and Exchanges Commission (SEC) had sued Ripple a few years back, for violating securities laws, when selling its XPR token without having registered with the agency. Since then, it has ramped up its regulation efforts with a rather heavy hand, considering most digital assets as cryptocurrencies. The crypto industry of course disagrees with this stipulation and prefers to view them as commodities, in a highly contentious matter.
The SEC's crackdown culminated with June's lawsuits against crypto exchanges Binance [1] and Coinbase [2] for operating as unregistered exchanges (among other things). On Thursday however, the crypto industry scored a legal victory against the regulator.
U.S. District Judge Analisa Torres ruled that Ripple did not violate securities laws with the Sale of XPR to public exchanges (programmatic sales) [3]. Ripple CEO Brad GarlIinghouse hailed the decision, tweeting "XRP IS NOT A SECURITY!!" [4], while Coinbase said it will "re-enable" XPR trading [5]. This was not a clear-cut victory though, since the Judge still considers XPR as a security when it comes to institutional sales.
The ruling boosted cryptocurrencies, with FXCM's CryptoMajor Basket rising yesterday and trying to set new 2023 highs. The stock of Coinbase also benefited, surging nearly 25% on Thursday, to the highest levels in over a year.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 14 Jul 2023 https://www.sec.gov/news/press-release/2023-101 | |
| Retrieved 14 Jul 2023 https://www.sec.gov/news/press-release/2023-102 | |
| Retrieved 14 Jul 2023 https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.874.0_4.pd | |
| Retrieved 14 Jul 2023 https://twitter.com/brad_garhlhouse/status/1679518848905777152 | |
| Retrieved 28 Apr 2024 https://twitter.com/CoinbaseAssets/status/1679575239657758721 |
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