The global crypto trading volumes experienced a substantial sweep upwards to $16.56 billion within a mere two-day span, jumping from Wednesday’s $12.74 billion, marking an approximate 30% growth. This boost has been largely credited to the recent legal victory secured by Ripple against the US Securities and Exchange Commission (SEC), specifically relating to the sales of XRP on exchanges. The pivotal verdict stated that such sales did not equate to the provision of investment contracts.
However, while the verdict seemingly favored Ripple, a fine line was delicately drawn. A less noticed segment of the ruling stated that XRP qualifies as a security when sold to institutional investors, satisfying requirements outlined in the Howey Test. Following this court outcome, there was a surge in the purchase of XRP, causing a price rally of over 70% which in turn led to a volume spike that overwhelmed certain crypto exchanges, including US-based exchange Uphold.
This victory for Ripple against the SEC undeniably stirs the pot for other cryptocurrencies standing in the regulator’s crosshairs. The recent cases against crypto behemoth Binance and the leading US-based crypto exchange Coinbase, wherein the SEC alleged that multiple listed tokens are unregistered securities, flipped the markets into a temporary downtrend. Predominantly affected were cryptocurrencies like Binance’s native token BNB, Solana’s SOL, Cardano’s ADA, Polygon’s MATIC, amongst others.
Nonetheless, while some exchanges considered delisting these tokens, the ripple effect (no pun intended) of Ripple’s win appeared to rejuvenate the market. That sparked hope amongst investors that the SEC may reconsider its stance towards these digital currencies and the prospect of this yielded a favourable response with altcoins like Solana, Cardano, and Stellar Lumens rallying by approximately 20%.
However, the question persists – will the SEC’s approach evolve in the golden light of Ripple’s success, or was this a one-off incident soon to be eclipsed by stringent regulations? Only time will translate this coin-toss into a reality.
Source: Cryptonews
