Ripple's victory in court brought the end of the crypto winter closer
Date: 2023-07-15 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Many cryptocurrencies have updated their annual high after the court did not recognize Ripple Labs' native token (XRP) as a security, and analysts predict the end of the crypto winter. Reuters writes about this, citing analysts.
"The regulatory environment is changing. And from what we've seen in the last 24 hours, it could have been for the best," said Matthew Dibb, chief investment officer at cryptocurrency management firm Astronaut Capital.
Specifically, Bitcoin (BTC) was trading at its highest price since June 2022 at $31,818. Over the year, it grew by more than 90% and almost 30% in a month. The second-largest cryptocurrency, Ether (ETH), has its best price since March. And XRP, which, according to the decision of the American judge, can be legally sold on public crypto exchanges, grew by 73%.
The Ripple case changed the mood of the market
According to investors, the end of litigation between the Securities and Exchange Commission (SEC) and Ripple will lead to a change in market sentiment.
"Ripple stakeholders have been waiting for some regulatory clarity. Yesterday, the court seems to have provided just that," said Justin d'Anetan Bitcoin , head of business development for Asia at Keyrock.
According to him, the wording remains somewhat unclear, but the fact that XRP tokens sold on public crypto exchanges are not securities under the law "probably serves as a precedent."
The story of Ripple and the SEC is not over
U.S. District Judge Analysis Torres ruled that Ripple did not violate federal securities laws by selling XRP on crypto exchanges. However, yesterday's verdict was not an unequivocal victory for Ripple. The judge also stated that XRP sales to institutional investors can still be classified as securities transactions.
Representatives of the SEC, in turn, noted the solidarity of the court with the regulator on the issue of valuation of assets using the Howey test and said they would continue to study this decision.
