Ripple Soars Partial Victory in Legal Battle with SEC. In a significant development for the cryptocurrency industry. Ripple Labs achieved a partial victory in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). A judge in the U.S. District Court for the Southern District of New York ruled that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts. This ruling brings some much-needed regulatory clarity to the cryptocurrency market.
XRP Surges 66% and Overtakes Binance’s BNB Token
Following the court ruling, Ripple’s XRP experienced a remarkable surge, reaching as high as 80% in price. As a result, XRP surpassed Binance’s BNB token to become the world’s fourth-largest digital asset by market capitalization. The valuation of XRP now stands at an impressive $41.44 billion, according to CoinDesk data. This surge in value has attracted the attention of major crypto exchanges, including Coinbase and Gemini, who are considering listing or relisting the token.
Mixed Outcomes: Legality and Questions Regarding Security Status
While the court ruling delivered positive news for Ripple and XRP holders, legal experts suggest that it falls short of fully settling the matter of how digital assets are defined under U.S. law. The judge determined that the institutional sale of XRP tokens violated federal securities laws, raising questions about the legality of their offering. CoinShares’ Head of Product, Townsend Lansing, highlighted this aspect, emphasizing that the court’s decision marks a significant victory for the SEC and sets a precedent for its actions against other cryptocurrencies.
The Arrest of Celsius Co-Founder Amid Multiple Lawsuits
In a separate development, Alex Mashinsky, co-founder and former CEO of Celsius, a now-insolvent crypto lender, was arrested in New York. The U.S. Department of Justice confirmed the arrest following an investigation into the collapse of the company. Mashinsky and others face criminal charges, including securities fraud, commodities fraud, wire fraud, and conspiracy to manipulate the price of Celsius’ token CEL. The charges were accompanied by three lawsuits filed by the SEC, CFTC, and FTC against Mashinsky and Celsius.
Ripple’s XRP experienced a significant surge of 66% following a partial court victory in its legal battle with the SEC. This propelled XRP to become the world’s fourth-largest digital asset by market capitalization. However, questions remain about the legality of XRP’s offering and its classification as a security. Additionally, the arrest of Celsius’ co-founder adds further complexity to the crypto landscape. As criminal charges and lawsuits are filed against him and the company. These recent developments highlight the ongoing regulatory challenges faced by the cryptocurrency industry.