Key Takeaways
- Ripple’s XRP token surged 96% after a U.S. judge ruled that the sale of XRP on exchanges does not constitute investment contracts.
- XRP has reached its highest price since March 2022, reaching a peak of 93 cents.
- Uphold experiences technical issues due to high demand as investors flock to purchase XRP following the court ruling.
XRP has experienced a remarkable surge of 96% following a partial victory in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The price of XRP reached a peak of 93 cents, marking its highest level since March 2022. The surge came shortly after a U.S. judge ruled that the sale of XRP tokens on exchanges did not qualify as investment contracts.
Following the court ruling, XRP witnessed an astonishing 96% surge in just one day. This surge propelled XRP’s price to a peak of 93.8 cents, its highest level in over a year. The surge indicates renewed investor confidence in XRP. Note XRP has faced significant legal uncertainty since the SEC filed a lawsuit against Ripple in December 2020, alleging that the company conducted an unregistered securities offering by selling XRP.
The District Court for the Southern District of New York delivered a significant ruling in favor of Ripple. It stated that the sale of XRP tokens on digital asset exchanges did not constitute investment contracts. The court further explained that the transactions failed to meet the third prong of the Howey Test, which determines whether an investment contract exists. This ruling offers a partial victory for Ripple, potentially paving the way for further legal clarity surrounding XRP’s regulatory status.
As XRP’s price surged and demand increased, Uphold, one of the few crypto exchanges offering XRP, experienced technical difficulties due to the high demand from investors. Uphold’s Twitter account confirmed the issues, citing overwhelming demand as the cause. The increased interest in purchasing XRP underscores the positive sentiment surrounding Ripple’s partial victory in the SEC lawsuit and indicates a resurgence of interest in the cryptocurrency.
Source
https://finance.yahoo.com/news/ripple-crypto-industry-score-partial-160448932.html
