Ripple Labs’ XRP experienced a notable 7.4% price surge within the past 24 hours, defying the relatively modest gains seen in the broader crypto market.
This upward movement is likely fueled by traders speculating on a positive outcome for Ripple Labs in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC).
Recent developments include the release of documents related to William Hinman, the former director of the SEC’s Division of Corporation Finance, who expressed views suggesting that certain cryptocurrencies, including XRP, should not be considered securities.
The unveiling of documents tied to William Hinman’s statements has sparked significant interest among market participants.
Hinman’s 2018 speech indicated that he did not view bitcoin and ether as securities, providing a potential argument for Ripple Labs to assert that XRP should not be classified as a security either.
Ripple Labs has eagerly seized upon these remarks, believing that they could potentially sway the outcome of their legal dispute with the SEC. As a result, any progress made in the case has a direct impact on XRP prices.
In late 2020, the SEC filed a lawsuit against Ripple Labs, alleging that the company engaged in the sale of unregistered securities.
Although Ripple has distanced itself from XRP in the past, emphasizing its independent nature as a digital asset, the outcome of the lawsuit holds considerable significance for the future of XRP.
As the legal proceedings unfold, investors closely monitor any developments that could affect Ripple Labs’ position and ultimately impact XRP prices.
