XRP Is Not A Security
Finally, Ripple Labs wins the case after a long legal battle in court with the U.S. SEC. XRP is not an unregistered security ruled by Federal District Judge Analisa Torres. One exception is when it's used to raise funds from institutions.
The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its two chief executives and brought allegations that Ripple offered unregistered security. It takes time to settle this issue. That's great news. There is a reflection on the XRP price after this win. XRP price went up to $0.83 from 0.47 in a short period of time.
People who bought XRP at a low price captured this gain. Maybe you wish you would buy or buy more XRP. When the SEC claims that any specific crypto is an unregistered security, people usually stay away from that crypto. Crypto exchanges delist that crypto quickly with a view to not getting into trouble.
It creates uncertainty and usually, the price of that crypto drops significantly. People start selling more and the price falls further. People who hold XRP, believe in this project and take the risk, they are super happy. I think this happiness and positive vibes spread everywhere.
At the time of filing lawsuits against the most popular crypto exchanges Binance and Coinbase, the SEC mentioned some cryptocurrencies as unregistered securities. Some exchanges delisted some crypto after that. This victory shows once there is a lawsuit against specific crypto, that's not over. The outcome can be positive.
The way the centralized authority went after crypto, you got a feeling that every altcoin might end up being a security. Altcoins might not have a bright future. Things can change pretty quickly in crypto. And it does not take long to see the reflection in the crypto market.
Checking out your risk tolerance level first before investing in crypto. Once the price pumps, do not get into FOMO and make the decision to buy. Wait, observe the market, and then buy crypto based on your strategy.
So happy to see this victory. I'm excited to see what coming up next and how the crypto market reacts.
Image Sources: 1, and 2.
Reference: 1.
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I think it's a good win for the crypto world. It clarifies what is considered a security and the SEC has left that vague intentionally. I think the SEC can still appeal but it's looking good for the crypto world.
There is no doubt now. XRP is not a security and it is very clear. :)