Ripple’s (XRP) victory over the SEC has ramifications that go beyond the lawsuit. Cryptocurrencies that had been classified as “securities” by the US financial watchdog, such as MATIC, SOL and AVAX, are also experiencing sharp rises. Here’s an update on this trend
The Ripple VS SEC case doesn’t just affect XRP
In the US, the Ripple VS SEC case doesn’t just affect XRP.
In the case against Coinbase, the US Securities and Exchange Commission (SEC) cited 12 cryptocurrencies as “securities”. The US financial watchdog is in fact basing its entire argument on the notion of “securities”. Ripple was accused of offering securities to investors without declaring it, and therefore of trying to deceive them.
The judge ruled yesterday that XRP is not a security – at least not when it is offered on exchange platforms. This sets a precedent that could influence the 12 other cryptocurrencies that the SEC has also accused of being securities. The latter are benefiting from an upsurge in confidence… and this is of course being reflected in their prices.
Starting with Solana’s SOL. In less than a day, the cryptocurrency jumped by 50%, to once again exceed 30 dollars. It has since lost ground, but is still up 46% for the week :
Solana’s SOL is now the 9th most capitalised cryptocurrency of the moment
MATIC, ADA, AVAX… Cryptocurrencies are on the rise again
Same topo on the side of Cardano’s ADA, which posted +20% over the last 24 hours. Polygon’s MATIC is up 14.5% over the same period, and Avalanche’s AVAX is up 17%.
The trend is well and truly confined to the cryptocurrencies examined by the SEC. By way of comparison, the price of Bitcoin has risen by just 2% over the past 24 hours, while ETH has fallen by 0.1%. It will be remembered that Gary Gensler, the head of the SEC, dodged questions when it came to determining the status of the Ethereum cryptocurrency.
The battle is far from over, but the signs are encouraging for the cryptocurrencies in question. For the SEC, Ripple’s initial funding remains to be discussed in particular, and this too will be considered a precedent. So the regulator certainly hasn’t said its last word.