Yerevan (CoinChapter.com) – Ripple Lab’s native token XRP gained 25 percent valuation on Tuesday, as a rumor started circulating on social media platforms that it will settle an ongoing lawsuit filed against it by the US Securities and Exchange Commission.
SEC lawsuit
The US securities regulator filed the said lawsuit in Dec 2020. It accused Ripple Labs of illegally selling $1.3 billion worth of XRP, the native token of the Ripple blockchain that SEC deemed as “unregistered securities.” The matter is now in court, with XRP supporters noting that Ripple Labs might win the case.
Brad Garlinghouse, the chief executive of Ripple Labs and also one of the accused in the SEC lawsuit, commented shot back at the SEC for not being clear on the cryptocurrency regulations in the US. He added that the regulator’s dim approach has hurt investors en masse.
Read more: XRP Least Affected By Ongoing Musk-Led Crypto Bloodbath
After the online meeting on May 21, the judge in the case, Sarah Netburn, granted Ripple Labs access to SEC’s internal discussions on cryptocurrencies. Her decision expects to determine the status of XRP. Should the internal documentations reveal, SEC referring to Bitcoin or Ethereum as ‘currency’ and not ‘securities,’ the law enforcement agency will face accusations of practicing bias. It could end up crumbling their case.
Read more: XRP bulls count on lawsuit gains amid the crypto crisis
Stefan W. Huber, a politician from Zug, Switzerland, tweeted about his views on Ripple’s eventual win. He pinned May 31 as the date of the announcement.
James K. Filan, a lawyer involved in the SEC vs. Ripple case, also took to Twitter to inform his followers of the upcoming schedule of the proceedings. In the list presented below, the proceedings are planned until June 10 at this point, contradicting the rumor in the tweet above.
Meanwhile, XRP managed to show a bullish trend for recovery from the recent crisis across the crypto market.
Where is XRP?
XRP rallied 25 percent in 24 hours compared to the Sunday stats. The price peaked at $1.06 in the London session Tuesday before correcting at $0.94.
The sudden surge in value is partially due to the overall price recovery among altcoins. Ethereum is up by 14 percent in the last 24 hours. Binance coin is on a strong rally, and Bitcoin itself rose 7 percent. Many experts believe the recent crisis was not the ‘bubble burst’ that the skeptics warned about but rather a setback that can bring further gains.
XRP price is highly dependent on the outcome of the lawsuit. It is unclear whether May 31 rumor will become a reality, but many Ripple supporters are certain of the eventual positive outcome and hold on to their tokens, boosting the price.
Read more: Should Elon Musk Start Accepting XRP For Environment’s Sake? This Analyst Thinks Yes
