XRP, the cryptocurrency associated with Ripple Labs, experienced a significant surge of 7.4% in the past 24 hours, defying the overall market trend.
Traders appear to be placing their bets on a positive outcome for Ripple Labs in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC).
The recent price increase coincided with the release of documents related to William Hinman, the former director of the SEC’s Division of Corporation Finance from 2017 to 2020. These documents were made public as part of the SEC’s lawsuit against Ripple Labs.
Back in 2018, Hinman delivered a speech in which he suggested that both bitcoin (BTC) and ether (ETH) should not be classified as securities.
One of his emails explicitly stated, “We do not need to see a need to regulate Ether, as it is currently offered, as a security.”
Ripple Labs is now arguing that Hinman’s remarks imply that XRP should not be considered a security either. This potential interpretation could lead to a favorable outcome for Ripple in the ongoing legal proceedings.
The SEC filed a lawsuit against Ripple Labs in 2020, accusing the company of selling unregistered securities. Ripple has consistently maintained its separation from XRP, which serves as the token powering its products and the XRP Ledger network. Nevertheless, any progress in the lawsuit has a direct impact on the value of XRP.
Traders and investors are closely monitoring the developments in the Ripple vs SEC case, as a positive resolution could have significant implications for the future of XRP.
The recent price surge reflects the market’s optimism and belief that Ripple Labs may secure a favorable outcome in its legal battle with the SEC.
