Ripple Labs, the company behind the XRP token, has won a partial victory in a case brought against it by the U.S. Securities and Exchange Commission (SEC). Judge Analisa Torres ruled that XRP is not a security, but only in regard to programmatic sales on digital asset exchanges. This ruling led to a surge in the price of XRP, making it the fourth-largest cryptocurrency by market capitalization. However, legal experts caution that the ruling is only partial and does not set a precedent. The SEC may also appeal the decision.
The case, which started in December 2020, saw the SEC accusing Ripple and two of its executives of offering an unregistered security. While this ruling is a positive development for Ripple, there is still uncertainty surrounding the outcome. It is possible that a higher court could reverse the decision, and the SEC may appeal.
Following the ruling, major U.S. exchanges such as Coinbase, Kraken, and iTrustCapital have announced that they will be relisting XRP for trading on their platforms. This has further contributed to the surge in the token’s market capitalization, which reached a new yearly high of $46.1 billion.
In other news, Celsius Network, a crypto lender, has been fined $4.7 billion by the Federal Trade Commission (FTC) and its CEO, Alex Mashinsky, has been arrested on criminal fraud charges. The FTC alleges that Celsius misappropriated over $4 billion in consumer assets and marketed the platform as a “safe place” for cryptocurrency deposits. Mashinsky has pleaded not guilty to the charges.
Europe’s first spot Bitcoin exchange-traded fund (ETF), created by Jacobi Asset Management, has been delayed but is now expected to debut later this year. The ETF was initially set to launch in July 2022 but was postponed due to market conditions. The asset manager believes that there is a gradual shift in demand compared to last year.
Meanwhile, cryptocurrency exchange Binance has reportedly laid off over 1,000 employees in recent weeks. The cuts were global, with customer service workers being heavily affected, especially in India. The exchange announced a 20% reduction in staff on May 31, stating that it was reallocating resources amid ongoing regulatory crackdowns in the U.S.
In conclusion, Ripple’s partial victory in the SEC case has resulted in a surge in the price of XRP and its market capitalization. However, the outcome of the case remains uncertain, as the ruling is only partial and the SEC may appeal. Additionally, other developments in the cryptocurrency industry, such as the fines and arrests at Celsius Network and Binance’s layoffs, highlight the ongoing regulatory challenges faced by the industry.