XRP Surges to a 5-Month High Amid Rumors Surrounding SEC Case Against Ripple
XRP cryptocurrency soared to a five-month high, up around 10%, as it traded above $0.50, on the back of rumors regarding the outcome of the Securities and Exchange Commission (SEC) case against Ripple Labs. The cryptocurrency’s surge is linked to speculation that Ripple Labs could be victorious in the case, paving the way for XRP to be regarded as a commodity rather than a security. Some lawyers linked to the case believe that a win for Ripple Labs would cause XRP’s price to skyrocket, offering clarity on future regulatory treatment for many tokens.
XRP Trading Volume Spiked in South Korean Crypto Exchanges
In an unusual turn of events, XRP trading volume spiked significantly over the last 24 hours on South Korean crypto exchanges, UpBit, Bithumb, and Korbit. The trading volumes surged to billions of dollars, with traders especulating that the rally is due to South Korean traders’ euphoric rallies on tokens and driving up prices. It is considered an anomaly as Bitcoin and Ethereum usually account for the majority of trading activity.
XRP Cryptocurrency Prices Rally Due to Regulatory Developments
XRP prices are up over 50% since March 12, and more than 13% in less than 24 hours. The rally coincides with regulatory developments that could impact the cryptocurrency. The US government has filed lawsuits against entities such as Binance for offering unregistered derivatives products to US traders. Experts believe that these lawsuits may impact the price of XRP if regulators classify it as a commodity instead of a security. If this happens, it may end ongoing litigation with the SEC over allegations that Ripple Labs raised more than $1 billion by selling unregistered securities.
Joe DiPasquale, CEO of BitBull Capital, noted that regulatory actions against entities like Binance could make XRP more acceptable. However, Andrew Rossow, an attorney and CEO of AR Media, highlighted that government agencies’ unclear regulatory approach is not helping the crypto industry.
Crypto Market Surges Broadly
It is worth noting that the rally in XRP’s price and trading volume was part of a broader surge in the crypto markets this week. Bitcoin and Ethereum also traded higher, and the industry’s total value hovered around $1.2 trillion.
In summary, XRP’s recent price surge has followed several regulatory developments that have caused speculation about its classification as a commodity instead of a security. Traders are watching closely for updates on the SEC case against Ripple Labs while also monitoring developments in South Korean crypto exchanges. Nevertheless, experts caution that government agencies’ lack of clear regulatory policy continues to present risks for investors in the cryptocurrency industry.
Image Source: Wikimedia Commons
