The decision highlights the evolving regulatory landscape surrounding cryptocurrencies and the potential implications for their classification in the future.ĭespite a suit brought about by the US Securities and Exchange Commission (SEC) in 2020, Ripple has maintained its position among the top 10 cryptocurrencies by volume. This ruling establishes a precedent that could impact other cryptocurrencies, including Solana (SOL), Cardano (ADA), Polygon (MATIC), and other tokens facing similar allegations of being unregistered securities. However, the court concluded that Ripple's institutional sales of XRP were indeed an unregistered securities offering. The court determined that the sale of Ripple's XRP tokens through exchanges and algorithms did not qualify as investment contracts. Securities and Exchange Commission (SEC). In July 2023, Ripple achieved a partial victory in its legal battle against the U.S. SEC Vs Ripple Update: XRP Partially Wins Lawsuit Against SEC The live price of XRP is updated and available in real time on Binance. In February 2023, XRP Ledger (XRPL) developers unveiled a proposal for a cross-chain bridge they believe would expand the blockchain's functionality. Ripple Labs worked to enhance global payment capabilities, rather than to replace the old system. When XRPL was originally engineered in 2012 by Jed McCaleb, Arthur Britto and David Schwartz prior to the formation of the blockchain company, the idea was for Ripple to be a global payment network that would offer a better solution than the traditional banking and financial systems in place. This means XRP is used in the processing of digital and fiat currency transfers on XRPL network. XRP also functions as an intermediary on the XRPL network, which is able to swap digital and fiat currencies through its network DeFi protocol. This makes Ripple stand out in the cryptocurrency industry, and such factors can affect XRP price. Another interesting feature of XRP is that miners receive their validation fees from the aforementioned charge, as all XRP coins were placed into circulation when the network was first launched. 00001 XRP is charged for every transaction processed on the underlying XRP Ledger (XRPL). The Ripple network is powered by its native cryptocurrency, XRP. Transactions on Ripple are typically completed within four to five seconds, much faster than some on other independent blockchain networks that use different protocols. This model ensures that payments on the network are subject to considerable security measures without compromised efficiency. Ripple is a uniquely designed blockchain that works on a consensus model in which all nodes given access to the system must validate transactions on the network. For now, it appears reports of XRP’s death were greatly exaggerated.Ripple (XRP) is a decentralized payment network that was built to replace the traditional money transfer network, SWIFT. With billions on the line, the crypto world watches anxiously to see if XRP's phoenix act will endure. The company’s CEO Brad Garlinghouse stated: “Despite the lawsuit, we have continued to build and commercialize the XRP Ledger’s use cases”.Īs the SEC lawsuit heads towards a crescendo, XRP’s price action suggests investors are betting that Ripple will prevail and avoid having XRP deemed an illegal security. Ripple has also ramped up efforts to list XRP on international exchanges. What explains this revival?Įxperts cite renewed retail investor interest, Ripple winning small legal victories against the SEC, and optimism that a settlement is around the corner. Yet, against all odds, XRP has shown remarkable strength despite lacking regulatory clarity in the U.S. The lawsuit has dragged on since December 2020 with no resolution in sight. This surprise resurgence comes as Ripple and SEC lawyers continue their scorched-earth courtroom battle. XRP reclaimed its spot as a top 10 cryptocurrency. It rallied from under $0.40 in January 2022 to hit highs of $0.69 by August. XRP’s price has soared almost 350% in 2022, outperforming major cryptocurrencies like Bitcoin and Ethereum. XRP has stunned cryptocurrency observers in 2022 by staging a significant price rebound, even as Ripple's legal battle with the SEC drags on.Īfter plummeting over 90% in value in 2021 due to the SEC alleging XRP was an unregistered security, the embattled token has risen from the crypto ashes this year.
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