Bitcoin, Ethereum and other major coins have been left out in the cold by the sudden rocketing of the payments cryptocurrencies, called XRP, developed by the company Ripple.
After a positive development in its legal case with the U.S., the price of the XRP has jumped almost 10% over the last 24 hours. The financial regulator regulates the financial industry.
Terra’s Luna, Cardano, BNB, and other top ten cryptocurrencies have more or less traded sideways with the bitcoin price dropping back under the closely-watch $40,000 per bitcoin level.
The document was filed on Friday in the legal battle between the company and the US. The judge allowed Ripple to use a fair notice defense, meaning that the SEC failed to inform it that its XRP sales could potentially violate U.S. laws. Financial rules.
“Today’s order makes it clear there’s a serious question whether the SEC ever provided Ripple with fair notice that its distributions of XRP—since 2013—would ever be prohibited under the securities law,” Stuart Alderoty, Ripple’s general counsel, said via Twitter, adding: “Good to see the judge rejecting the SEC’s attempt to prevent Ripple from pursuing its fair notice defense.”
The SEC lawsuit has caused a decline in the price of XRP. The SEC launched action last year after it was accused of selling XRP as security.
According to the SEC, the sale of $1.3 billion dollars of XRP by Brad Garlinghouse and his executives between 2013 and 2020 broke SEC rules.
“We’re expecting some decisions from the court, you know, sooner rather than later as it relates to a couple of decisions before the court but, look, it’s moved slowly,” Garlinghouse told Fox News earlier this month.
A motion to dismiss the SEC’s individual charges against Brad Garlinghouse and Chris Larsen was denied by the Judge Torres.
Many are expecting an influx of companies and investors into the space once the regulations are made clearer.
“We surely need some regulatory clarity in this space in order for institutions to become involved,” Scott Sheridan, the chief executive of trading platform Tastyworks said in emailed comments. “Once we have that clarity and greater market participation, it opens a world of possibilities.”
After the publication of a long-awaited Biden administration executive order on cryptocurrencies that tasks various government departments and federal agencies with investigating the risks associated with cryptocurrencies but quickly gave up much of their gains, the prices of cryptocurrencies skyrocketed.
“The executive order provides a general outline of the plan and gives some insights on the direction of regulation and issues of crypto that pose concerns to the federal government, namely consumer protection, financial stability, national security, and climate risk,” Haohan Xu, the chief executive of crypto trading platform Apifiny said via email.
“The crypto industry wants to address these issues as well, and many crypto companies are eager to play by the rules of the game as long as the rules are clear.”
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