In a landmark case, the United States District Court in the Southern District of New York has granted a partial victory to Ripple Labs in its lawsuit with the Securities and Exchange Commission (SEC). The lawsuit, initiated back in December 2020, had profound implications not just for Ripple and its native token, XRP, but for the wider cryptocurrency industry and its investors.
The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.
Where it all Started for SEC vs XRP
Where to now?
In light of the decision, the SEC released the statement pictured above. The statement seems to show that the SEC is content with some aspects of the decision. Due to these comments, industry analysts are speculating that the regulatory body may not appeal the decision. A willingness on the part of the SEC to work within the parameters set by this verdict, could help to bring greater certainty to the cryptocurrency space moving forward.
Exchanges that had de-listed XRP due to SEC enforcement have been quick to re-list it. Coinbase was among the biggest to re-list.
XRP Price Action
The ruling's immediate impact on XRP's price has already been a boon for investors, with those who purchased XRP at $0.47 USD enjoying an overnight rise of over 70%.
Such investors, while relishing this boost, will now need to carefully consider their investment strategy in light of the partial classification of XRP as a security. Take Profit or HODL?
On top of that we have seen Bitcoin (BTC) hit a new Yearly high and significant movement in coins like Solana (SOL), Cardano (ADA) and Stellar (XLM). These coins have moved due to the perceived lifting of the risk of SEC enforcement after they were earlier named by the SEC as securities.
Stormrake is here for you to chat through your options as always.
This ruling marks a significant step in the ongoing story of cryptocurrencies' relationship with regulatory bodies. While it doesn't provide definitive answers, it does offer some direction and opens up new discussions that could help shape the future of the industry. Ripple's partial victory is not just a win for the company and the XRP currency, but potentially a positive development for the wider world of digital assets.
Create a brokerage account today
If you enjoyed this Thunder Trading, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.
No Advice Warning
DisclaimerAll statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.
Copyright © 2022 Stormrake Pty Ltd, All rights reserved