The XRP token of Ripple Labs has been reintroduced on a number of crypto trading platforms after Thursday morning saw the US court issue a ruling in its legal battle with the SEC.
Crypto.com, Kraken, and Bitstamp all followed in the footsteps of the Coinbase crypto exchange, which had listed the Ripple protocol’s native token on its platform.
The ruling
The reason behind listing the XRP token on platforms to make it accessible to users in the United States came after a partial ruling was issued in the case between Ripple Labs and the SEC.
Analisa Torres, the Federal district judge, said in the ruling that the XRP token does not classify as security unless its sales are conducted primarily for raising funds from institutions.
While the case was not about the token’s secondary sales, the decision that it cannot be considered a security has given crypto exchanges the confidence needed for offering it once more.
The chief legal officer of Kraken, Marco Santori, said that the decision of the court is the first step towards providing legal clarity regarding cryptocurrencies in the United States.
He stated that this clarity was helpful because it provided them the ability of hiring, planning, and investing in the country where they were first launched.
Crypto exchanges
There were crypto exchanges that had opted to delisted the XRP token after the Securities and Exchange Commission (SEC) had called it a security and filed a lawsuit against it in 2020.
Bitstamp also published a post to announce the return of XRP on its platform and clarified that it was the latest ruling from the court that had prompted them to relist it.
In fact, the exchange added that after Bitcoin and Ethereum, it was XRP that was the most preferred token by its clients due to which it was very important for it.
It appears that more crypto exchanges are planning to add the XRP token to their offerings in the coming days.
The Gemini crypto exchange also announced that it was exploring the idea of listing the XRP token as well.
The impact
According to Cameron Winklevoss, the co-founder of Gemini, the ruling could tip in favor of the crypto industry and be aware of the securities regulator, which is using the enforcement approach for regulation purposes.
Taking to Twitter, Winklevoss said that this was no less than a watershed moment for the entire industry, as it made the SEC a dinosaur regulator and relegates it to TradFi.
After the Court’s ruling, the price of the XRP token also got a major boost. According to CoinGecko, the XRP token was trading at a price of $0.78 at publishing time.
This was after it had recorded a gain of 64.8% during a 24-hour period. The entire industry was enjoying an uplift in the mood.
Therefore, a number of other cryptocurrencies were also able to record gains, as the previous day saw Bitcoin record a rise of 2%, while 6% gains were also seen in Ethereum.