Ripple’s XRP is one of the few large cryptocurrencies that are not trading flat in the past 24 hours but has, in fact, surged by an impressive 16% before retracing. It appears that the most recent development in the company’s case against the Securities and Exchange Commission is perceived well by market participants.
Ripple’s Most Recent On-Pitch Victory
In December 2020, the United States Securities and Exchange Commission filed a lawsuit against Ripple. The watchdog alleged that the company made an unregistered $1.3 billion security bid.
Unlike many other crypto-related companies who went on a path to accept the charges and pay a penalty, Ripple decided to battle the case, determined to establish that XRP is not a security. The case has been going back and forth, but just recently, the court has denied the Commission’s motion to strike Ripple’s fair notice affirmative defense.
This motion sought to determine whether Ripple had received a reasonable and fair notice from the SEC as to whether or not the XRP sales were illegal security sales.
A Huge Win for Ripple
Commenting on the matter was Brad Garlinghouse, CEO at Ripple, who said that this was a huge win for the company.
For clarity, Ripple’s General Counsel, Stuart Alderoty, who noted:
Today’s order makes it clear there’s a serious question whether the SEC ever provided Ripple with fair notice that its distributions of XRP – since 0213 – would ever be prohibited under the securities law.
He also added:
Good to see the judge reject the SEC’s attempt to block Ripple from pursuing its fair notice defense. It is even more imperative that the sun go down on the SEC’s “regulation by enforcement” approach.
Now, the price of XRP surged from about $0.72 to $0.84 shortly after the documents were revealed to the public.
The cryptocurrency has since returned to where it is currently trading, but is still up 7% on the day.
