The market capitalization of XRP increased by $21 billion in just three hours.
The sudden growth was driven by a decision from the Southern District of New York court in the case of the SEC against XRP creator Ripple, which has been ongoing since 2020. The lawsuit alleged that the company had been selling unregistered securities in the form of XRP tokens to retail investors.
At a hearing on July 13, Ripple scored a partial victory when the judge stated that "the offer and sale of XRP on digital asset exchanges is not the same as offers and sales of investment contracts."
Just a few hours after that, XRP's market capitalization surged by a whopping $21.2 billion, reaching a new annual high of $46.1 billion. The price of the XRP token rose by 98% to $0.93, but has since dropped by 15 cents.
Alongside this decision, the value of Ethereum rose by about 5.7% (almost to $2011, the highest level since May), while Solana and Polygon both grew by 18% and 20% respectively. Bitcoin increased by 3% in the last 24 hours.
The obvious rush to buy XRP briefly led to a drop in the American cryptocurrency exchange Uphold, which was one of the few major exchanges in the US continuing to sell XRP while others decided to delist it.
Arca's investment director wrote on Twitter that the court ruling on XRP "clearly paves the way for other tokens, excluding BTC, to be considered 'not securities'."
The Securities and Exchange Commission requires the registration of all securities sold to the public, which entails providing regular financial reports and business information. SEC Chairman Gary Gensler has repeatedly stated that most cryptocurrencies are securities and fall under their jurisdiction. The flagship and largest cryptocurrency, Bitcoin, according to Gensler, is a commodity, not a security.
Source: Cointelegraph, Market Watch
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