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XRP "Emerges Victorious" in Lawsuit Against SEC, Witnesses Short-term Surge of Over 60%

XRP "Emerges Victorious" in Lawsuit Against SEC, Witnesses Short-term Surge of Over 60% WikiBit 2023-07-14 10:45

XRP "Emerges Victorious" in Lawsuit Against SEC, Witnesses Short-term Surge of Over 60%

On Thursday, the United States Southern District Court of New York ruled that trading and selling Ripple's XRP tokens on exchanges and through algorithms do not constitute investment contracts and do not violate securities laws. However, the court stated that institutional sales of the tokens did indeed violate federal securities laws.

The court divided the tokens sold by Ripple over the span of 10 years into three categories: 1) sales to hedge funds, venture capitalists, and other institutional investors; 2) direct programmatic sales to retail through digital asset exchanges; and 3) “in the form of payment for services,” such as providing services to employees and other service providers through restricted token purchase agreements or option contracts.

Therefore, there is currently no clear consensus on the debated issue of whether XRP should be classified as a security. However, it can be determined that trading conducted on digital asset exchanges would not classify XRP as security.

As a result of the ruling, Coinbase, Kraken, and Gemini have resumed supporting XRP trading. In response, the XRP token has experienced a significant short-term surge, with its current price increasing by over 60%.

It is important to note that this ruling is a preliminary judgment, and further proceedings, including trials and appeals, may follow.

Similarly classified as a security by the SEC, FTT has also experienced a short-term price increase.

While the current ruling may not be the final outcome, it can serve as a precedent for other cryptocurrencies classified as securities by the SEC. Specifically, it suggests that programmatic sales to retail investors on exchanges (excluding ICO/IEO/Launchpad) should not be considered securities.

The following is a compilation of some tokens that have been classified as securities by the SEC, organized based on their market capitalization:

Market Cap above $100 billion: BTC, ETH

Market Cap between $1 billion and $10 billion: ADA, TRX, SOL, MATIC, BUSD, ATOM, TON, ICP, FIL, NEAR

Market Cap between $100 million and $1 billion: ALGO, SAND, MANA, AXS, BTT, FLOW, CHZ, NEXO, DASH, FTT, LUNC

Market Cap below $100 million: AMP, POWR, COTI, XYO, RLY, VGX, MNGO, KIN, DDX, LBC, RGT, SALT, DRGN, TKN, MIR, HYDRO, IHT, NGC, USTC, EMAX, BXY, BCC, PRG, AOR, OMG, LCX, DFX, KROM.

The information provided in this article is for informational purposes only and should not be construed as investment advice. The

cryptocurrency

market is highly volatile and speculative, and investing in digital assets carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and publication assume no responsibility for any financial losses or damages resulting from the use of the information provided.

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