The price of XRP, the native token of Ripple Labs, jumped 8% on Thursday after a U.S. judge ruled that the Securities and Exchange Commission (SEC) must provide more information about its case against the company.
The SEC filed a lawsuit against Ripple in December 2020, alleging that the company had raised $1.3 billion through an unregistered securities offering. Ripple has denied the allegations and has been fighting the case in court.
In a ruling on Thursday, U.S. District Judge Analisa Torres ordered the SEC to provide more information about how it determined that XRP is a security. The judge said that the SEC’s “analysis is incomplete and inadequate” and that the company has not provided “sufficient justification” for its conclusions.
The ruling is a victory for Ripple and could be a significant setback for the SEC’s case. The SEC has been under increasing pressure to provide more information about its case, and the ruling could make it more difficult for the agency to win.
The price of XRP jumped in response to the ruling, rising from $0.70 to $0.76. The rally was led by large investors, who purchased over $100 million worth of XRP in the hours following the ruling.
The ruling is a positive development for Ripple and could lead to a settlement with the SEC. However, the case is still ongoing and it is too early to say what the ultimate outcome will be.