XRP’s Legal Clarity Boosts Market Confidence Amid Regulatory Challenges

• The landmark judgment for XRP by Judge Jackson strengthens the staple of crypto, influencing SEC cases such as Binance’s and signaling positive shifts for the industry.
• One pro-XRP attorney called the ruling pivotal and something that could be taken further to the Second Circuit Court against the SEC.
• The movement of the price of XRP higher following the ruling reflects market optimism—faith from investors despite ongoing regulatory uncertainties.

What may be termed a victory for cryptocurrencies, Judge Amy Berman Jackson backed the ruling by Judge Torres on Ripple’s XRP, declaring it not a security. A ruling entirely consistent with Judge Torres’ explanation that transactions in XRP do not qualify as investment under the Howey test, this indeed is a sigh of relief for the community of Cryptos and does induce optimism on regulatory clarity.

Impact on Ongoing Cases

Judge Jackson’s decision sets a significant precedent for high-profile U.S. crypto litigation, including cases involving Coinbase, Kraken, and Consensys. Consequently, the verdict supports the claim that secondary sales of cryptocurrencies like Binance’s BNB are not securities. This development could substantially influence ongoing and future legal battles involving the SEC.

Additionally, Judge Jackson concurs with the Second Circuit Court’s ruling that crypto asset secondary transactions are not securities. This agreement strengthens the position of crypto businesses in resisting SEC regulation. The alignment of these rulings across different cases marks a pivotal moment for the industry.

Legal Insight and Community Reactions

Pro-XRP lawyer Bill Morgan has hailed the ruling as a positive development for XRP holders and the broader crypto community. He points out that the SEC’s potential appeal against Judge Torres’ summary judgment could escalate the matter to the Second Circuit Court. In the SEC vs. Binance case, Judge Jackson rejected the SEC’s argument that a crypto token itself is always an investment contract. She found the Ripple and Telegram cases’ views on this issue to be “clarifying and persuasive.” He emphasizes that Judge Torres’ decision on XRP not being a security is now seen as a legal example in court.

In the judgement today in SEC v Binance Judge Amy Berman Jackson rejected the SEC embodiment theory that the crypto token is the embodiment of an investment contract rather than possibly in certain circumstances being the subject of an investment contract. In reaching this… pic.twitter.com/NRlEBb2bNB

— bill morgan (@Belisarius2020) June 29, 2024

Eleanor Terrett states that Coinbase, Kraken, and ConsenSys will use the recent Binance ruling to strengthen their legal cases. Hence, the SEC can no longer claim that the Ripple ruling was an isolated decision.

XRP Price Snapshot and Future Implications

XRP has risen since Judge Jackson’s judgment. XRP gained more than 1% from a 24-hour low of $0.470 to $0.475 and aims to recapture $0.50. However, the trading volume dropped 3% yesterday, with derivatives traders buying heavily. Coinglass shows XRP futures open interest rose 0.62% due to large buying on OKX and BitMEX.

Moreover, Ripple has scored legal victories, but the SEC might still win on whether XRP is a security. The SEC could appeal if the ruling favors Ripple. Additionally, a new administration or SEC Chair might shift the regulatory stance on XRP. After receiving the latest briefs, lawyers like Fred Rispoli expect Judge Torres to rule on remedies and injunctions within 60–90 days. This timeline may avoid expert witness rulings.

Source