Coinbase, the largest cryptocurrency exchange in the United States, has officially relisted XRP, the digital asset primarily issued by Ripple.
XRP Ranks as the Fourth Largest Cryptocurrency
As anticipated, XRP's price surged significantly following the resolution of its prolonged legal dispute.
For most of the past two years, XRP fluctuated between the sixth and seventh positions in market capitalization rankings. However, after the bullish announcement, the digital asset skyrocketed, surpassing USD Coin (USDC) and Binance Coin (BNB) within hours.
According to CoinMarketCap, XRP is currently trading at $0.783, marking a 66% increase over the past 24 hours.
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"The Key Takeaway: XRP Is Not a Security"
Despite ongoing legal proceedings after the recent victory, Ripple CEO Brad Garlinghouse emphasized that the most critical aspect of the ruling was the classification of XRP as a digital token rather than a security.
Garlinghouse tweeted:
"The most important part of this ruling is: 'XRP, as a digital token, is not in itself an "investment contract" under Howey requirements.'"
This decision represents a major victory for the broader cryptocurrency industry, setting a precedent that could bring regulatory clarity to the U.S. crypto market.
Garlinghouse further stated that the ruling marks a "watershed moment" for crypto, reinforcing Ripple's stance that XRP is a utility token, not a security.
The decision has already impacted the market, with XRP's price soaring over 65% in 24 hours.
What Does This Mean for the Future of Crypto Regulation?
The Ripple ruling is a landmark decision, but the battle isn’t over. The SEC is still evaluating whether to appeal, potentially escalating the case to the Supreme Court.
Even if the SEC doesn’t appeal, the ruling could significantly influence future crypto regulation. The SEC’s case against Ripple hinged on the argument that XRP was a security because it was sold to investors expecting profits. However, the court ruled that XRP is not a security since it doesn’t constitute an investment contract.
This decision may complicate the SEC’s ability to regulate other cryptocurrencies in the future. If the agency can’t classify a token as a security based solely on profit expectations, it will need alternative regulatory approaches.
While the long-term implications remain uncertain, the ruling undeniably strengthens the crypto industry, potentially fostering more innovation and investment.
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FAQs
1. Why did Coinbase relist XRP?
Coinbase relisted XRP after Ripple’s legal victory clarified its status as a non-security, reducing regulatory risks for exchanges.
2. Will XRP’s price continue to rise?
Market trends suggest bullish momentum, but prices remain volatile. Monitor trading volumes and regulatory updates.
3. Could the SEC still appeal the ruling?
Yes, the SEC has the option to appeal, which could prolong legal uncertainty.
4. How does this affect other cryptocurrencies?
The ruling sets a precedent, potentially shielding other tokens from SEC security classification.
5. Is XRP a good investment now?
While the recent surge is promising, always conduct due diligence and assess risk tolerance before investing.
6. What’s next for Ripple?
Ripple will focus on expanding cross-border payment solutions and leveraging its legal clarity for growth.