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XRP Rallies on Optimism of Favorable Outcome in SEC Legal Battle

XRP, a cryptocurrency closely associated with Ripple, has soared amid growing optimism that Ripple will win its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). According to CoinGecko data, XRP was trading at around $0.45, up over 11% in the last 24 hours, and up to 20% earlier. The rally comes as traders point to a supplemental notice submitted by Ripple on March 22. The notice cites a recent ruling in a separate case regarding Binance.US’s rescue plan for crypto lender Voyager Digital. In the case, the SEC rejected the plan, arguing Voyager’s native VGX token was a security and that Binance was an unregistered securities exchange. However, the judge rejected the SEC’s objections, citing the “vagueness” of the regulator’s arguments.

XRP Legal Battle with SEC Continues

The SEC accuses Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen of breaching U.S. securities laws by selling XRP without registering it first with the regulator. Ripple maintains that XRP should be considered a digital currency, not a security. Ripple and the SEC have both submitted their final briefs seeking a summary judgment to the case, which is now with Judge Analisa Torres of the Southern District of New York. Monica Long, President of Ripple, has expressed optimism for a positive resolution, stating that the company expects the case to conclude sometime this year. The ruling could have significant implications for the digital currency industry, with regulated financial instruments requiring SEC supervision and frequent transparency disclosures.

Crypto Market Sentiment and Potential Regulation

XRP is the sixth-largest cryptocurrency globally by market value, and its rally has been boosted by the broader crypto market sentiment, which has rallied in the past week or so amid anticipation of a pause or slow down in interest rates and inflation. Some crypto investors believe that the SEC legal battle’s outcome will arrive in the coming days, though it is unclear when Judge Torres will make her decision. Ripple’s Long argued that Europe is more advanced than the US in its treatment of crypto, highlighting the bloc’s Markets in Crypto Assets regulation as an example. Long believes that the SEC is regulating through enforcement rather than establishing clear regulations for the sector. For its part, the SEC has stated that it wants all crypto companies and projects to bring their operations into compliance with federal securities laws, calling for time-tested rules and laws to protect the investing public.

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