On Friday, bitcoin was trading around its all-time high after a legal triumph in which the cryptocurrency XRP was declared not to be a security. Ripple Labs Inc did not breach securities legislation by selling its XRP coin on public exchanges, a US judge ruled on Thursday. Although the ruling was limited to a single case, it inspired hope among cryptocurrency investors that more cryptocurrencies may not be classified as securities in the future.
The crypto ecosystem reacted positively to the news, with many stating that the bull market has begun and that new all-time highs for numerous coins are simply a matter of time. Overnight, Bitcoin reached its highest price since June 2022, reaching $31,818 on the Bitstamp exchange. It is up more than 90% for the year and nearly 30% in just one month.
Ether, Litecoin, Solana and Cardano Also Rise
Ether, the second-largest cryptocurrency, had its highest session since March, and Ripple, which a US judge decided could be lawfully exchanged on public crypto exchanges, surged 73%. Polygon's MATIC token increased by 17.82 per cent, while Litecoin, Solana, and Cardano's tokens saw major gains as well. Even Bitcoin and Ethereum witnessed a boost, with their prices rising above the $31,000 and $2,000 marks, respectively.
For years, the Securities and Exchange Commission has contended that digital assets, like stocks and bonds traded on Wall Street, are securities and should be subject to the same stringent laws. The crypto community rejects the argument bitterly and has struggled to withstand the increased scrutiny as well as a string of scandals and arrests of top figures in the sector.
The US judge's decision is seen as the major defeat for SEC that has also sued two of the largest cryptocurrency exchanges, Coinbase and Binance, last month, accusing them of selling unregistered securities to the public. But Thursday's ruling can provide the crypto industry a strong argument in their support.
The crypto community vehemently rejects the argument and has faced challenges in dealing with heightened scrutiny and a series of scandals, along with the arrest of prominent figures within the industry. The latest verdict was viewed as a watershed moment for the crypto asset market, especially given the adverse macroeconomic environment and rising regulatory pressures that digital assets face.
However, it is important to note that the recent victory cannot be viewed as an absolute win for the entire industry. Judge Torres also ruled that Ripple had violated securities law by selling XRP to sophisticated investors, including hedge funds.
So far,the SEC has aggressively pursued enforcement actions against people and companies engaging in fraudulent or non-compliant cryptocurrency transactions. These measures serve as a deterrence and demonstrate the SEC's commitment to investor protection and market integrity.
Critics, on the other hand, believe that a lack of clear principles and uneven regulatory decisions have caused uncertainty for firms and hampered innovation. The SEC has recognised the need for regulatory clarity and has taken steps to offer it through official announcements, enforcement actions, and public remarks made by senior officials. After the judgment a spokesman for the S.E.C. said in a statement that the agency was reviewing the decision. "We are 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," the statement said. The SEC is most likely to appeal against the version.