Amidst a tumultuous market, XRP faced a sharp 17% drop, leading to $218 million worth of liquidations across XRP, XLM, ADA, and other major altcoins. The decline followed a New York judge’s ruling that XRP is not a security, sparking debates about its classification and Ripple’s legal scrutiny.
A significant market turmoil unfolded in the cryptocurrency space as XRP, the digital asset associated with Ripple, faced a sharp decline of approximately 17% in the past 24 hours. Chinese crypto journalist and blogger Colin Wu reported that traders rushed to liquidate their positions following a 13% plunge in XRP’s value. This drastic sell-off resulted in a staggering $218 million worth of cryptocurrency liquidations. Alongside XRP, other major altcoins, including ADA, LTC, XLM, MKR, FTM, and BSV, were affected by the market downturn.
New York Judge’s Ruling: XRP Not Classified as Security, SEC’s Stance Refuted
The recent roller-coaster ride for XRP price comes after an important legal ruling. A New York judge, Analisa Torres, ruled that XRP is not classified as a security, refuting the stance of the U.S. Securities and Exchange Commission (SEC). The court specified that XRP sales directly to financial institutions by Ripple should be considered securities. However, other sales, including programmatic sales and those conducted by Ripple, fall outside the scope of securities regulation.
This ruling sparked questions and debates within the cryptocurrency community, with many wondering whether Ripple’s Over-the-Counter (ODL) sales and XRP releases from escrow would also be considered securities. In response to one such question on Twitter, Ripple’s Chief Technology Officer (CTO), David Schwartz, assured that the company’s legal team is currently examining the matter.
Despite the recent uncertainty and the market’s reaction to the legal developments, there seems to be some relief as XRP’s price has shown signs of recovery. At the time of reporting, the value of XRP has risen by nearly 6%, reaching $0.72193.
The crypto community continues to closely monitor the situation, as the outcome of Ripple’s legal battles and regulatory clarity around XRP could significantly impact the future of the digital asset industry. Investors and enthusiasts are advised to stay informed about the latest developments from both official channels and regulatory bodies to navigate the dynamic and ever-changing cryptocurrency landscape.