XRP token jumps 76% amid Ripple victory over SEC
News of Ripple's victory in the case against the SEC caused the XRP token to skyrocket during the US session.
The company was favored by Judge Analisa Torres of the Southern District of New York.
Retail investors cannot purchase securities in the form of XRP.
Institutional sales of XRP were deemed to be sales of securities; nevertheless.
Bitcoin experienced an increase of approximately 4%, while altcoins reacted with an even greater rise.
At around 18:20 Moscow time, XRP token prices began to surge following the release of significant news for the entire cryptocurrency market, which was first reported on Twitter. In a matter of hours, the token's value rose from $0.47 to over $0.80.
The crypto market was abuzz with excitement when news broke that the court had ruled in Ripple's favor in its case against the US Securities and Exchange Commission. This resulted in Cardano increasing by 20%, Solana by 18%, and Dogecoin by 9%.
In 2020, the Court of the Southern District of New York began a process to determine whether program sales and other distributions of tokens, as well as sales of XRP tokens to private investors, constituted transactions with investment contracts, or securities. After concluding their process, the Court determined that tokens do not equate to securities.
Judge Analisa Torres ruled that Ripple Labs' institutional sale of its XRP token violated federal law, as reported by Reuters. This was due to the fact that it constituted an unregistered offer and sale of investment contracts.
Judge Torres made an important reservation, however: a jury can consider other aspects that go beyond the recognition of Ripple Labs' violations of the Securities Act.
The ruling of the judge is not definitive, the matter will still be deliberated in court, and the SEC may file an appeal.
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