The US court has decided that the cryptocurrency “Ripple” (XRP) is not comparable to securities in all cases and is therefore not subject to securities supervisors and regulations, reports CNBC.
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The good news has boosted the price of the cryptocurrency significantly.
According to Coin Metrics, the price of XRP rose by 71% to around 80 US cents per coin. The news gave hope to cryptocurrency investors, who breathed a sigh of relief that other coins could not be considered securities after all.
Litecoin and Solana jumped 18%, and Cardano rose 20.31%. Bitcoin and Ethereum also gained more than 4% and 6%.
The court decision is the latest development in a three-year battle between Ripple and the US Securities and Exchange Commission (SEC). In 2020, the SEC sued Ripple for violating US securities laws by selling XRP without prior registration with the agency.
Well, the court decided that the trading of coins on the stock exchanges is not comparable to the trading of shares, because there was no promise that the value of the coin would increase thanks to the work of its creators, as it would be in the case of shares, where the company’s actions can directly raise or lower the value of the security.
However, as Reuters writes, the court’s decision is complicated because it consists of several parts. Namely, the court also partially satisfied the SEC’s complaint. Namely, it was recognized that although the trading of cryptocurrencies on digital exchanges does not correspond to the trading of securities, the sale of the specific cryptocurrency to financial institutions and professional investors is considered illegal trading of securities.
At the same time, as cryptocurrency experts mention, this decision will significantly affect the SEC, which has begun to crack down on the world of cryptocurrencies in recent years, claiming that digital coins are securities and therefore subject to the same rules as stocks and bonds.
“Today’s decisions are a huge step forward for the industry,” Chris Martin, head of research at Amberdata, told CNBC. its tactics in several of its complaints, and I expect that this decision will affect several other cryptocurrencies as “non-securities”.
2023-07-14 07:13:33
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