Ripple’s XRP jumps 20% on hopes of beating the SEC in court
Ripple was sued by the Securities and Exchange Commission in 2020 over cryptocurrency XRP. Photo illustration of Fortune
Ripple’s long-running battle with the Securities and Exchange Commission could soon end, and fans of its native crypto XRP are confident they will win — so much so that investors have pushed the token’s price up 21% in the last day, to 45 cents, as it has risen 19% in the past week.
At the heart of the tension comes speculation that the end is near for a two-year court battle over whether, as the SEC claims, XRP is a security and whether two of its executives violated the registration provisions of the Securities Act of 1933, which defined the “Howey test” for securities.
Ripple, which does not directly issue the token, has argued that XRP does not satisfy the Howey test that defines securities and that the cryptocurrency should not be considered an investment contract.
Ripple CEO Brad Garlinghouse said in an interview with CNBC at the World Economic Forum in January that he hoped the conflict would be resolved in the first half of this year.
The outcome of the case could have major ripple effects for the industry. If Judge Analisa Torres of the Southern District of New York rules in favor of regulators, it could mean that many other cryptocurrencies are also securities. The judge can also send the case to a jury trial, or limit the scope of what a trial will consider.
Earlier this month, Ripple team members claimed that a Supreme Court decision lent credibility to their own case and filed court papers saying so.
Notable figures in the crypto world, including Messari CEO Ryan Selkis, have increasingly rallied to Ripple’s side as a possible decision nears.
I have been critical of Ripple in the past (various reasons) but more aligned with them than ever before.
Ripple should win the extensive XRP-SEC case and XRP Ledger should be given the opportunity to compete fairly on digital payments globally.
The demand is there! https://t.co/fewaEami0p
— Ryan Selkis 🥷 (@twobitidiot) March 21, 2023
I hope Judge Torres was already very aware of the ruling by Judge Wiles of the US Bankruptcy Court for the Southern District of New York (same district as Judge Torres) in Voyager Bankruptcy. @Ripple offers the ruling as further support for the fair notice defense. https://t.co/31r8ng11GS
— John E Deaton (@JohnEDeaton1) March 20, 2023
