In the past 24 hours, XRP has seen gains of up to 5% following reports that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple seems to be leaning in favor of the blockchain company. As of the time of writing, XRP is trading 2% higher at 46 cents, marking gains for the second day in a row. Conversely, bitcoin and ether both fell 1%, contributing to a modest dip in the overall crypto market.
Over the past week, XRP has added nearly 10% in value, making it the top performer among major tokens. In 2020, the SEC filed a lawsuit against Ripple, accusing the firm of selling unregistered securities. Although Ripple has consistently tried to distance itself from XRP, any progress in the lawsuit appears to impact XRP prices.
Recently, a federal judge stated that the SEC cannot seal documents related to the 2018 speech on cryptocurrencies and securities by former official William Hinman. District Judge Analisa Torres ruled that these documents are relevant to the judicial process, therefore they must not be sealed.
Gaining access to these documents could provide insight for Ripple’s lawyers on how Hinman reached the conclusion that ether was not a security. This, in turn, could influence XRP’s classification as a security, which some traders deem bullish for XRP tokens. This belief stems from the possibility of Ripple emerging victorious in the court case.
Henry Liu, CEO of crypto trading platform BTSE, stated that this development has driven the XRP price up and pushed it past long-held resistance levels. He noted that there is speculation regarding Ripple and the SEC potentially reaching a settlement. Other conjectures suggest Ripple could emerge victorious regardless, adding to the positive momentum for XRP.
In conclusion, the recent gains in XRP’s value indicate a growing belief by crypto traders that Ripple could achieve a favorable outcome from the SEC lawsuit. If Ripple were to win or reach a settlement, it would mark a significant milestone in the relationship between cryptocurrencies and securities regulations. While the outcome remains uncertain, it is clear that the market is keeping a close eye on this case and Ripple’s future. As the case progresses, it will continue to be an essential talking point for crypto enthusiasts and the broader market.
Source: Coindesk
