SOL, MATIC, ADA Surge After Ripple (XRP) Ruling Not Classified as Investment Contract
The indirect ruling stating Ripple (XRP) is not a security is revitalizing the entire cryptocurrency market, particularly tokens facing similar allegations.
SOL, MATIC, ADA Surge After Ripple (XRP) Ruling Not Classified as Investment Contract
As reported by Coin68 on the evening of July 13, the presiding judge in the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs declared that Ripple's XRP transactions are not considered investment contracts.
Following this positive news, XRP's price at the time of writing surged by 65%. Concurrently, prominent tokens accused by the SEC of being securities, such as Solana (SOL), Polygon (MATIC), and Cardano (ADA), are also benefiting from Ripple's recent legal victory.
SOL: +32%
The price of SOL has risen by 32% in the past 24 hours, currently trading at $28. Earlier, the Solana Foundation asserted that SOL is not a security and expressed readiness to engage with legal authorities to clarify classification issues.
Price fluctuation of SOL over 1D timeframe captured at 15:00 on July 14, 2023, on Binance
ADA: +23%
ADA's token has similarly seen a 23% increase over the 24-hour period. Like Solana, the project's development team has argued against ADA being classified as a security.
Price fluctuation of ADA over 1D timeframe captured at 15:00 on July 14, 2023, on Binance
MATIC: +18%
Meanwhile, MATIC has surged by 18% on the news, trading at $0.85.
Price fluctuation of MATIC over 1D timeframe captured at 15:00 on July 14, 2023, on Binance
While the final ruling in this three-year lawsuit has yet to be delivered, this development sets a precedent for cryptocurrency companies facing similar regulatory challenges as Ripple, potentially paving the way for appropriate defenses.
