This cryptocurrencies The lawsuit filed against the US Securities and Exchange Commission (SEC) skyrocketed after digital asset advocates hailed a federal judge’s decision. Ripple Labs Inc.describing it as a win for the crypto industry regarding what is classified as a value.
XRP, token at the center of the dispute, jumped up to 80% At 84 cents. Other tokens that were recently listed by the SEC as unregistered securities, for example Solarium And Cardan, also recorded strong gains, rising around 16% and 18% respectively. HE bitcoin It reached $31,339, up about 3%.
“A victory for the cryptocurrency industry”
“This is a win for the cryptocurrency industry,” he said. Ashok Ayyar, attorney at Ashbury Legal. “It confirms that the XRP token is not an investment contract and is therefore a security in its own right.”
U.S. District Judge, Analysis TorresHe said on Thursday in New York that the crypto company’s sale of XRP tokens to sophisticated investors has passed an investment contract test under federal securities law.
“Enterprise buyers would understand that fluctuation The judge was presenting a speculative value proposition for XRP with potential gains from Ripple’s entrepreneurial and management efforts,” the judge wrote.
However, Torres decided that this does not apply to programmatic investors. general public. He said that there is no evidence that such investors can analyze the numerous statements made by Ripple about XRP. The judge pointed out that many statements quoted by the SEC may not have been made public.
“My overall impression is that this is a positive decision for the digital asset industry,” he said. Daniel Tramel Stable, a partner at Winston & Strawn. “The court has clearly ruled that XRP is not a security in itself. Instead, the focus should be on the conditions of the supply itself.”
Since 2017, Ripple’s so-called programmatic sales, less than 1% of global XRP trading volume, according to Thursday’s court filing. Therefore, according to the document, the vast majority of people who buy XRP on digital asset exchanges have never invested their money in Ripple. “Therefore, considering the economic reality and the overall circumstances, the Court concluded that Ripple’s programmatic sale of XRP does not constitute an offering and sale of investment contracts.”
Coinbase Rise
actions Coinbase Global Inc.The largest cryptocurrency exchange in the USA rose by up to 18% to $ 101.31. The company was involved in a lawsuit with the SEC alleging it was selling tokens, which are unregistered securities.
“This underscores that a direct sale of digital assets by an issuer will usually be securities, but that other sales, especially secondary market sales, are unlikely to be considered securities, a key argument in Coinbase’s defense against the SEC. ” elliott steinHe is a senior analyst at Bloomberg Intelligence.