+2.06%<\/bg-quote>
\n and Axie Infinity as securities.\u00a0<\/p>\nImportance of the Ripple case <\/h2>\n
The Ripple lawsuit can be traced back to 2020, when the SEC sued the company and two executives for raising over $1.3 billion through selling XRP, alleging that they violated security laws. <\/p>\n
\u201cIt\u2019s been clear since this case was filed that it would have implications across the entire industry,\u201d said Sheila Warren, chief executive at Crypto Council for Innovation, a crypto advocacy group. <\/p>\n
In the court filing, Judge Torres wrote that \u201cXRP, as a digital token, is not in and of itself a \u2018contract, transaction[,] or scheme\u2019 that embodies the Howey requirements of an investment contract. Rather, the Court examines the totality of circumstances surrounding Defendants\u2019 different transactions and schemes involving the sale and distribution of XRP.\u201d <\/p>\n
The Howey Test refers to a U.S. Supreme Court case for determining whether a transaction qualifies as an \u201cinvestment contract,\u201d and thus will be considered a\u00a0security. <\/p>\n
Judge Torres\u2019s ruling \u201cfundamentally undercuts the SEC\u2019s argument that it has the authority over these underlying assets and that regulatory clarity already exists,\u201d Warren wrote to MarketWatch.\u00a0<\/p>\n
\u201cThis is certainly a call to action to Congress and will light a fire under current proposals, Warren said, adding that she views the ruling as a \u201csignificant thaw in the regulatory permafrost that the U.S. has been stuck in.\u201d\u00a0<\/p>\n
\u201cAs we\u2019ve seen from today\u2019s action, markets are interpreting the XRP ruling as a sign that top altcoins could pass regulatory muster,\u201d said Michael Safai, managing partner at Dexterity Capital. Altcoins typically refer to cryptocurrencies other than bitcoin. <\/p>\n
Still, some of the price jump likely has been propelled by speculators, who \u201csee this as an opportunity to buy undervalued assets with upside,\u201d Safai wrote in emailed comments.<\/p>\n
\u201cThe rest of the market is feeling positive, yet cautious. We\u2019re a long way out from getting regulatory clarity, but this is a sign that we will get some meaningful resolution in the near future,\u201d noted Safai. <\/p>\n
Townsend Lansing, CoinShares\u2019 head of product, echoed the point about continued regulatory uncertainty. The court ruling on XPR and Ripple indicates the \u201congoing and evolving nature of the regulation of cryptocurrencies,\u201d Lansing said. <\/p>\n
Reuters reported Thursday that an appeal of the ruling could be possible.<\/p>\n
Crypto in a snap <\/h2>\n
Bitcoin
\n BTCUSD,
\n +0.37%<\/bg-quote>
\n gained 0.6% in the past seven days and was trading at around $31,137 on Thursday, according to CoinDesk data. Ether
\n ETHUSD,
\n +1.29%<\/bg-quote>
\n rose 1.9% during the same period to around $1,976.<\/p>\nMust-reads <\/h2>\n<\/p><\/div>\n