The Reason Behind Ripple’s XRP 16% Daily Surge Ripple’s XRP is one of the few large cryptocurrencies that are not trading flat in the past 24 hours but has, in fact, surged by an impressive 16% before retracing. It appears that the most recent development in the company’s case against the Securities and Exchange Commission is perceived well by market participants.
Ripple’s Most Recent Court Win
In December 2020, Ripple was sued by the United States Securities and Exchange Commission. The watchdog claimed that Ripple had carried out an unregistered security offer worth $1.3 billion. Ripple, unlike many crypto-related companies, chose not to take the charges and pay a fine. Instead, Ripple fought the case determined to prove that XRP was not a security. The case has been going back and forth, but just recently, the court has denied the Commission’s motion to strike Ripple’s fair notice affirmative defense. This motion was about Ripple’s reasonable and fair notice to the SEC concerning whether or not the XRP sales were illegal security sales.
A Huge Win for Ripple
Brad Garlinghouse (CEO at Ripple), commented on the matter, saying that it was a major win for the company. Providing further clarity was also Ripple’s General Counsel, Stuart Alderoty, who said:
Today’s order makes it clear there’s a serious question whether the SEC ever provided Ripple with fair notice that its distributions of XRP — since 0213 — would ever be prohibited under the securities law.
He also said:
Good to see the Judge rejecting the SEC’s attempt to prevent Ripple from pursuing its fair notice defense. It’s even more imperative that the sun sets on the SEC’s “regulation by enforcement” approach.
XRP prices jumped from $0.72 per unit to $0.84 in the hours following the disclosure of the documents to the public.