What happened
Over the last 24 hours, the price of XRP (XRP 0.90%), which was developed by the company Ripple Labs, is trading about 10.7% higher as of 10:24 a.m. ET today after receiving a favorable ruling in court.
So what
In 2020, the Securities and Exchange Commission sued Ripple Labs, claiming the company did not properly register XRP as a security when it raised funds in 2013. The SEC also alleged Ripple did not provide adequate disclosure to investors.
In recent weeks, however, the case has taken a favorable turn for Ripple after the company and the SEC both called on the U.S. District Court for the Southern District of New York to make a summary judgment.
Today, Ripple continued to look well positioned to win the case after Judge Sarah Netburn ruled that documents penned by William Hinman, a former SEC corporation finance division director, should be released.
The documents are in reference to a speech Hinman made at a summit in 2018 in which he allegedly said Ethereum was not a security. Ripple believes this could be a critical piece of evidence in its favor.
The crux of the case between the SEC and Ripple boils down to whether cryptocurrencies should be treated as securities and thus regulated by the SEC. Crypto advocates would like to see cryptocurrencies treated as commodities and regulated by the Commodities Futures Trading Commission (CFTC).
The case between the SEC and Ripple is being watched closely by the entire industry and could be precedent-setting.
Now what
The release of the documents is another sign that Ripple looks poised to win the legal battle.
SEC Chairman Gary Gensler has recently softened his tone, suggesting that Ethereum and Bitcoin should be regulated by the CFTC, although he didn't suggest all cryptocurrencies should be. Still, this is another positive development in the case, which could be coming to an end soon.
