The price of Ripple’s XRP token has risen by 4.53 percent in the past 24 hours and is even at a plus of 24.98 percent for the last week. At the time of writing, you buy an XRP token for $ 0.4869 and the project is moving in the right direction again. The optimism surrounding XRP appears to be fueled by the CFTC’s lawsuit against Binance.
What is going on?
You may have noticed that Ripple has been battling a lawsuit against the US Securities and Exchange Commission (SEC) for years. The subject of that lawsuit is the question of whether Ripple’s XRP token qualifies as a security for US financial law.
Funnily enough, the Commodity Futures Trading Commission (CFTC)’s launch of a lawsuit against Binance seems to be cause for optimism among the XRP community.
In fact, according to the CFTC, many major tokens available on Binance qualify as commodities, meaning they are not a effects can be. That could mean that XRP tokens also fall under the jurisdiction of the CFTC.
Ripple CTO agrees
Ripple CTO David Schwartz previously shared arguments for XRP tokens as digital commodities. “XRP is a raw commodity that trades in commerce and one XRP is treated the same as any other XRP. That is the definition of a raw material,” said Schwartz in January.
No part of the token’s value comes from any legal obligation from anyone to the token holders, according to Schwartz. That would mean that XRP does not qualify as a security under US law and Ripple will win the lawsuit against the SEC.
We will probably get the answers to this question soon, because the court is expected to rule soon in the case between Ripple and the SEC. So for now, things are looking a bit rosier for the token, as the market is green today, unlike other major coins like Bitcoin and Ethereum.