Exchanges Coinbase, Binance US, Kraken and Bitstamp have announced the relaunch of $XRP, while US-based cryptoy exchange Gemini said it is reconsidering relist $XRP, which had previously been delisted in the U.S. in late 2020 and 2021.
In the case, originally filed in December 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple. It claimed that $XRP was a security and that Ripple, through selling the token to institutional investors, listing it on exchanges, and distributing it through other means, was selling an unregistered asset and therefore violating federal law.
Shortly after the SEC filed the suit, exchanges such as Coinbase delisted the token because they did not want to run afoul of regulators. However, Ripple decided to fight, ultimately spending north of $200 million in the ensuing legal battle.
Before exchanges could re-evaluate $XRP, the Southern District Court of New York issued a landmark ruling in the ongoing lawsuit between the SEC and Ripple. The court ruled that while Ripple's initial sale of $XRP to institutional investors (e.g., venture capitalists, hedge funds, etc.) was a securities offering, its offering on secondary markets such as crypto exchanges was not.
Therefore, for the vast majority of retail investors, the buying and selling $XRP was not akin to the buying and selling unregistered securities. The crypto market soared when the judge’s decision became public. The price of tokens previously considered securities by the SEC rose sharply.
According to TokenInsight data, the $XRP price went up by 62.53% in the past 24 hours, trading at $0.766536 now.
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