March 23, 2023: On Wednesday, The XRP cryptocurrency soared as investors grew hopeful that Ripple, a firm closely associated with the token, would win its prolonged appropriate battle with the U.S. Securities and Exchange Commission.
According to data from CoinGecko, ET was up over 11% in the previous 24 hours. The token was worth nearly 45 cents at about 8 a.m. It was earlier trading up 20%.
On Tuesday, Traders pointed to a supplemental notice submitted by Ripple pointing to a ruling in a separate case which concerns Binance.US’ rescue plan for collapsed crypto lender Voyager Digital. Under the program, Binance’s U.S. unit was to purchase all of Voyager’s assets, which include its native VGX token, in a $1.3 billion deal.
The SEC rejected the plan, which argues VGX was akin to security and called Binance an unregistered securities exchange, according to the notice from Ripple.
However, the judge rejected the SEC’s objections and approved the bankruptcy plan citing what he is known as the “vagueness” of the regulator’s arguments and stating the SEC had not “offered any guidance at all as to just what it was that the Debtors allegedly were supposed to prove” to demonstrate VGX was not a security, according to the Ripple letter.
The SEC was only available for comment when contacted by CNBC.
The SEC accuses Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen of breaching U.S. securities laws by selling XRP without first registering it with the regulator. Ripple is contesting the SEC’s allegations, which maintain the view that XRP should be considered a digital currency instead of a security.
Monica Long, president of Ripple, said on Wednesday morning that she was “very hopeful” regarding achieving a positive resolution to the SEC battle, adding that it will conclude sometime this year.
Long said she thinks it’s “doubtful” the judge will rule in favour of the SEC “considering by our perspective both the facts and the law are on our side.”
If XRP were deemed a security, it could have enormous ramifications for the digital currency industry.
Floods of tokens may fall into the same category, making them regulated financial instruments needing SEC supervision and frequent transparency disclosures.