Ripple’s prolonged battle with the Securities and Exchange Commission could wrap up soon, and fans of XRP are confident Ripple will be victorious—so much so that investors have pushed the price of the token up 21% over the past day, to 45 cents, as it’s gained 19% over the past week.
The crux of the excitement comes from speculation that the end is near for a two-year-long court battle over whether, as the SEC alleges, XRP is a security and whether two Ripple executives violated the registration provisions of the Securities Act of 1933, which defined the “Howey Test” for securities.
Ripple, which doesn’t directly issue the token, has argued that XRP doesn’t satisfy the Howey Test that defines securities, and that the cryptocurrency shouldn’t be considered an investment contract.
Ripple CEO Brad Garlinghouse said in an interview with CNBC at the World Economic Forum in January that he hoped the conflict would be settled in the first half of this year.
The outcome of the case could have major repercussions for the industry. If Judge Analisa Torres of the Southern District of New York decides in favor of regulators, it could mean that many other cryptocurrencies also are securities. The judge could also send the issue to a jury trial, or narrow the scope of what a trial will consider.
Earlier this month, Ripple team members argued that a Supreme Court ruling added credence to their own case and filed court papers saying so.
Notable figures in the crypto world, including Messari CEO Ryan Selkis, have increasingly rallied to Ripple’s side as a possible decision gets closer.
I’ve been critical of Ripple in the past (various reasons), but more aligned with them than ever before.— Ryan Selkis 🥷 (@twobitidiot) March 21, 2023
Ripple should win the overreaching XRP-SEC case, and the XRP Ledger should be afforded the opportunity to compete fairly on digital payments infra globally.
Demand is there! https://t.co/fewaEami0p
I’m hoping Judge Torres was already very aware of the ruling by Judge Wiles of the U.S. Bankruptcy Court for the Southern District of New York (same District as Judge Torres) in the Voyager Bankruptcy. @Ripple offers the ruling in further support of its fair notice defense. https://t.co/31r8ng11GS— John E Deaton (@JohnEDeaton1) March 20, 2023