Yerevan (CoinChapter.com) – XRP, the native token of Ripple Labs, managed to gain 20 percent over the weekend, as Ripple supporters got good news from Magistrate Judge Sarah Netburn, presiding over the US Securities and Exchange Commission (SEC) vs Ripple Labs lawsuit.
… the SEC filed the said lawsuit back in Dec 2020. It deemed XRP ‘securities’ and claimed that the blockchain startup sold them illegally for a $1.3 billion profit.
The court proceedings backfired when Ripple accused the law enforcement agency of extreme bias. They pushed the notion that the SEC has no grounds to single out XRP from all the digital coins. Judge Netburn granted Ripple access to the SEC’s internal documentation concerning cryptocurrencies. Should those documents reveal Bitcoin or Ethereum mentioned as ‘currencies,’ the agency will have a tough time continuing the prosecution.
The Latest Win For Ripple
The US SEC has previously filed a motion for Ripple to disclose legal advice the company got on whether the selling of $1.3 billion worth XRP was compliant with the US investment laws. More precisely, the agency wanted access to “all communications constituting, transmitting, or discussing any legal advice Ripple sought or received as to whether its offers and sales of XRP were or would be subject to federal securities laws.”
The Magistrate Judge denied the motion. Many traders took it as a sign of an upcoming much-awaited resolution of the lawsuit. Attorney Jeremy Hogan explained the significance of the decision in a tweet on Sunday.
The attorney also stated that if the Commission loses the lawsuit, it will reflect on the SEC’s credibility as a law enforcement agency. Brad Garlinghouse, the CEO of Ripple, who was charged by the SEC, also commented on the lawsuit. He stated that if the startup manages to come out of the lawsuit unharmed, it will benefit the crypto market as a whole. The win will bring more “precise definitions” and regulations that are still lacking today.
What Does It Mean For XRP?
XRP, as the native token of Ripple, has been dependent on the lawsuit proceedings, which are reflected on the daily charts. Whenever a hearing closed with a Ripple win, the price would go bullish. The same happened over the weekend, as XRP managed to log a 20 percent gain over the lawsuit news. The token traded at $1.01 in the European session Monday.
XRP has struggled along with the rest of the crypto market since May 13. However, the token gains inspired by the lawsuit news add an optimistic spin on the daily charts. If Ripple manages to win the lawsuit, XRP can expect further gains. As for now, the 20 percent surge over the weekend is high enough to hopefully keep the bullish momentum going.