Ripple token or XRP is an independent digital asset, native to the Ripple Consensus Ledger. Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network by Ripple. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol, it is built upon a distributed open source Internet protocol, consensus ledger and native currency (XRP).
Released in 2012, Ripple purports to enable “secure, instant and nearly free global financial transactions of any size with no chargebacks.” It supports tokens representing fiat currency, cryptocurrency, commodity or any other unit of value such as frequent flier miles or mobile minutes. At its core, Ripple is based around a shared, public database or ledger, which uses a consensus process that allows for payments, exchanges and remittance in a distributed process.
The Ripple CEO demanded clear regulatory rules for the crypto industry stating that the SEC shouldn’t undertake the approach of regulation through enforcement.
Open interest on XRP futures has set a new record over $1.1 billion as the community continues to celebrate Ripple’s win against the SEC.
Several top Wall Street firms stated that Coinbase is likely to benefit the most from the improved confidence and regulatory clarity coming from the XRP ruling.
The XRP price surge to its highest in 15 months while the trading volumes also shot up to a 10-month high following a favorable ruling in the SEC lawsuit.
Gensler sees the court’s ruling as disappointing as the Commission partially lost its case against Ripple last week.
Ripple hopes that many US banks and financial institutions will approach the company this quarter.
The surge in XRP price highlights the impact of legal outcomes on the crypto market.
Bitcoin (BTC), the world’s largest cryptocurrency, reached its highest price since June 2022, touching $31,818 on the Bitstamp exchange.
Schwartz’s caution comes amid a surge in XRP price and market capitalization.
Exchanges that delisted XRP back in 2020 in the wake of the lawsuit filed by SEC are now exploring the opportinities for XRP relisting. Among them are Gemini exchange, Kraken exchange, and Bitstamp.
According to the ruling, Ripple violated securities law when it sold XRP to institutional investors. However, the “programmatic sales” of XRP through exchanges and algorithms are not considered as the sale of securities.
Ethereum (ETH) price gained over 7.3 percent to trade around $2,010 on Friday with XRP and XLM up more than 60 percent in 24 hours.
This great win of Ripple in its battle against the SEC can be viewed as a reminder that the existing regulatory frameworks may not always fit the unique characteristics of cryptocurrencies and may require modification or refinement.
Ripple CTO addressed the matter, labeling the rumors as false and casting doubt on the credibility of the news article due to the absence of an official source.
In a report published June 15, JPMorgan’s analyst Nikolaos Panigirtzoglou said that SEC officials were unsure of Ethereum’s legal status in 2018.