It is widely reported that the SEC (Securities & Exchanges Commission) – 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 contests the SEC’s allegations, maintaining the view that XRP should be considered a digital currency rather than a security.
XRP cryptocurrency gained on Wednesday as investors grew hopeful that Ripple, a company associated with the XRP token, would win its prolonged legal battle with the U.S. Securities and Exchange Commission. The crypto coin was worth approximately 45 cents on Wednesday 22nd March 2023.
Traders pointed to a notice submitted by Ripple on Monday which pointed to a ruling in a separate case concerning Binance U.S. rescue plan for collapsed crypto lender Voyager Digital.
Under the plan, Binance’s U.S. unit was to buy all of Voyager’s assets, including its VGX token.
The plan was rejected the SEC, arguing VGX was akin to a security and calling Binance an unregistered securities exchange, as reported according to the notice from Ripple.
However, the judge rejected the SEC’s objections and approved the bankruptcy plan citing what he termed 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.
It’s been a long journey for the XRP coin – but this is positive news for XRP fans and for crypto fans in general.
XRP is expected to fly upon resolution of this dispute.