Ripple Labs, the company behind the cryptocurrency XRP, recently won a partial victory in a case brought forth by the U.S. Securities and Exchange Commission (SEC). The case, which has been ongoing since December 2020, involved allegations that Ripple offered an unregistered security. However, Judge Analisa Torres ruled in favor of Ripple, stating that the XRP token is not a security, but only in regard to programmatic sales on digital asset exchanges.
The news of the ruling caused XRP’s price to skyrocket, reaching as high as $0.93. As a result, XRP became the fourth-largest cryptocurrency by market capitalization, with its market cap reaching a new yearly high of $46.1 billion. The ruling also prompted several mainstay U.S. exchanges, such as Coinbase, Kraken, and iTrustCapital, to relist XRP for trading on their platforms.
While this ruling is a positive outcome for Ripple, experts warn against celebrating too soon. The ruling is only partial and does not set a precedent. The SEC may also appeal the decision, which could lead to a reversal by a higher court.
In other news, Celsius Network, a crypto lender, has been fined $4.7 billion by the Federal Trade Commission (FTC), and its former CEO, Alex Mashinsky, has been arrested under criminal fraud charges. The charges include securities fraud, commodities fraud, and wire fraud. The Commodity Futures Trading Commission has also filed a complaint against Celsius, alleging that the company misappropriated over $4 billion in consumer assets.
Meanwhile, Europe’s first spot Bitcoin exchange-traded fund (ETF) is set to debut later this year after a year-long delay. The ETF, created by London-based Jacobi Asset Management, was originally scheduled to launch in July 2022 but was postponed due to market conditions. The asset manager now sees a gradual shift in demand for the ETF.
Binance, one of the largest crypto exchanges, has reportedly laid off hundreds of employees in recent weeks. This comes as the exchange faces ongoing investigations by the U.S. Justice Department. The layoffs represent a 20% reduction in staff and could cost Binance more than a third of its workforce.
In conclusion, Ripple’s partial victory in its case against the SEC has had a significant impact on the crypto market, with XRP’s price surging and its market cap reaching new highs. However, experts caution that the ruling is only partial and that further legal proceedings may still occur. Additionally, other important developments in the crypto industry, such as the fines and arrests at Celsius Network and the delayed launch of Europe’s first Bitcoin ETF, highlight the ongoing regulatory challenges and uncertainties in the industry.
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