A big win for XRPA public loss for the SEC, but a victory for XRP holders – Ripple gets another win as a judge stops the SEC from accessing XRP legal records, and the token shoots up over 15%.
It might be the big dogs like Ether and Bitcoin (and, er, Doge) that get the big headlines, but XRP has been steadily making a name for itself since it was created back in 2012, and it’s already one of the biggest cryptos by market capitalization. Ripple is the company behind the XRP token, which is mainly known for its digital payment network and protocol. It’s managed to set itself apart from other popular digital tokens like Bitcoin and Litecoin by working directly with the established financial services sector, and a lot of major banks now use the payment system. It’s also been able to provide a better service – Bitcoin transaction confirmation can take a couple of minutes, but XRP gets the job done in just seconds at (in theory) a lower cost.
Despite its ambitious path, however, Ripple has been plagued with legal troubles with the Securities and Exchange Commission (SEC) – though that’s not stopped XRP from surging over 150% in value this year alone. In December 2020 the SEC filed a multi-billion dollar lawsuit against Ripple and two of its executives alleging that XRP was a $1.3 billion unregistered securities offering. The complaint said that Ripple’s XRP sales from 2013 to date were illegal, unregistered security offerings instead of the distribution of a digital token to build a payments network as they claimed.
But in the latest twist, as battle rages on, the SEC has been denied access to Ripple’s legal records, where they were hoping to find proof that Ripple was made aware the sale of XRP was illegal.
It’s a big win for Ripple, and has garnered some major excitement. Not too long ago, Ripple CEO Brad Garlinghouse said that the company (which is a majority shareholder in XRP) would be looking to go public as soon as the legal drama was over – and this could be a strong step in that direction. Watch this space, folks.