XRP’s hodl army has had a good few days. Measured over the past week, the token writes a price gain of 41 percent, with which XRP is now trading at $ 0.4921. According to the well-known YouTuber Ben Armstrong, who works under the brand name Bitboy Crypto, the price increase has everything to do with the Securities and Exchange Commission (SEC).
The lawsuit with the SEC
Ripple Labs, the company behind the XRP token, has been engaged in a legal battle with the SEC for years. The American financial regulator claims that the XRP token qualifies as a security, which would mean that Ripple Labs has made an illegal securities issue. In the United States – and also in the Netherlands for that matter – you are not allowed to just market an effect. In most cases you need permission from the supervisor for this.
For that reason, Ripple Labs and XRP have been in serious trouble for years. Now, though, it looks like the SEC wants to bury the hatchet. If they do give up the lawsuit with Ripple Labs, that would be a huge boost for the project. That would mean that the token can simply remain on the major exchange platforms. If XRP qualifies as a security, then platforms like Coinbase and Binance should not be allowed to list them.
Striking that XRP is rising right now
It is striking that the XRP token has just now started an explosive rise. A few days ago, the SEC submitted a summary assessment to the judge. Normally, that indicates the approaching end of a case. It seems most experts agree that Ripple Labs is going to settle this case in their favor.
For example, in a long thread on Twitter, attorney John Deathon writes down why he thinks the SEC will fail to prove XRP is a security. A story that, of course, has been received with loud cheers by the XRP community.