Popular cryptocurrency enthusiast Billy Markus, well-known in the cryptosphere for being the co-founder of the meme-inspired cryptocurrency Dogecoin ($DOGE)m has recently shard his analysis on the repercussions of the recent ruling on the Ripple vs. SEC case, saying that if $XRP isn’t a security “there ain’t much that would be”
In a response to a fellow Twitter user’s inquiry regarding the cause of the latest movements in the cryptocurrency market — whether due to the news about XRP or the recent Twitter airdrops — Markus conveyed his conviction that the XRP news was the definite catalyst.
This week, a federal judge in New York determined that the XRP token “is not necessarily a security on its face” in a ruling that set the cryptocurrency community abuzz. The U.S. Securities and Exchange Commission (SEC) had sued Ripple back in 2020, for alleged violation of U.S. securities laws, arguing that the firm sold XRP without prior registration with the agency.
Judge Analisa Torres has now ruled on the lawsuit, that XRP was a security when Ripple sold it to institutional investors years ago, but not to the public. The judge’s main argument was that institutional investors who bought XRP from Ripple in the past probably knew it had some features of a security, while investors who got XRP from crypto exchanges didn’t have the same information.
The SEC has also filed lawsuits against leading cryptocurrency exchanges Binance and Coinbase, in which it classified 19 other digital assets as securities. These assets rallied after the ruling came out, as it could mean they may not end up being considered securities.
Asset that rallied include Polygon’s $MATIC, Solana’s $SOL, and Cardano’s $ADA. The SEC has nevertheless responded to the ruling saying it was reviewing the decision and was “pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances.”
Featured image via Pixabay.