Coinbase Jumped 24% After Landmark Ruling
The US Government has experienced a challenging week, with significant developments in two cases.
Firstly, the Federal Trade Commission (FTC) lost its legal battle against Microsoft regarding the latter's acquisition of Activision Blizzard.
Secondly, the Securities and Exchange Commission (SEC) faced a setback in its case against Ripple (XRP), as the court ruled that the sale of XRP to retail investors should not be considered a security and thus does not come under the securities law.
This ruling caused a surge in XRP's value, increasing by 72% in a single day.
Displaying Coinbase Jumped 24% Af...
Additionally, Coinbase, the prominent cryptocurrency exchange, saw a 24% increase, boosting its own prospects in an ongoing legal dispute with the SEC.
Displaying Coinbase Jumped 24% Af...
The impact was not limited to these specific cryptocurrencies; other digital assets which the SEC has labelled as securities, such as Solana (SOL), Polygon (MATIC), and Algorand (ALGO) also experienced gains ranging from 13% to 17% following the ruling. There are more than 60 cryptos which the SEC labelled as securities:
Displaying Coinbase Jumped 24% Af...
However, it is important to note that the court determined that the sale of XRP to institutions is still considered a security.
The distinction lies in the fact that retail investors purchasing XRP on crypto exchanges were unaware that they were buying from Ripple Labs, whereas institutions were fully aware of Ripple Labs' involvement as the seller. Institutions were investing in the development of the Ripple ecosystem, with the expectation that this would drive up XRP prices.
This ruling holds significance as it sets a precedent that can be applied to other cryptocurrencies previously labeled as securities by the SEC. If retail investors are unaware that they are directly purchasing from the developer, these cryptocurrencies would not be classified as securities.
The outcome represents a significant victory for the crypto world and the retail business of crypto exchanges. Coinbase has already announced its plans to resume trading XRP on its platform.
This development highlights the clash between the SEC's traditional financial regulations and the disruptive nature of cryptocurrencies, which aim to challenge and transform the existing financial system. The court's decision has brought the crypto world one step closer to achieving its desired liberation.
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Stocks and crypto is a very high-risk investment because it's a volatile asset. That means that Bitcoin values may rise or fall dramatically in value over a very short period—even as quickly as a few hours or days.
XRP is in shock, unexpected result..I can only imagine.the size of the real bid right now... shh don't scare it ..😁🤘🧐👍
Oh trust me XRP will shoot back very quickly, watch out for SWFTC.
Buy XRP on Coinbase and Uphold now.