In a significant development for the crypto industry, a federal judge ruled on Thursday that Ripple’s XRP token does not meet the definition of a security as alleged by the Securities and Exchange Commission (SEC). While the ruling is complex and includes exceptions for tokens sold to institutional buyers, it has been widely celebrated by the digital asset industry.
Regulatory pressure on tokens and companies like Coinbase Global has been mounting, largely due to concerns regarding the classification of digital assets as unregistered securities. Thus, Ripple’s partial win is seen as a positive sign for the industry.
As a result of this ruling and the positive sentiment surrounding Ripple, the XRP token experienced a remarkable surge of almost 70% in the past 24 hours. Following suit, other non-Bitcoin cryptocurrencies also witnessed significant gains. Ether prices advanced by 6%, Dogecoin saw a 7% increase, and previously struggling coins like Solana and Cardano rallied by 26% and 21% respectively.
This ruling is expected to have broad implications for the crypto market, signaling potential shifts in regulatory approaches towards digital assets. It will be fascinating to see how this decision shapes the future of the industry.