- Ripple ruling that states XRP is not a security in secondary market sales was cited by Judge in SEC vs. Binance lawsuit.
- The ruling acted as a precedent, and the Judge clarified whether secondary market sales of crypto were securities.
- XRP climbs above $0.48 resistance on Monday, extending gains by nearly 1%.
Ripple (XRP) ruling acted as a precedent when Judge Amy Berman Jackson ruled in the US Securities and Exchange Commission (SEC) vs. Binance lawsuit. The Judge for the US District Court for the District of Columbia dismissed part of the charges against Binance concerning the secondary market sales of Binance’s native BNB token.
The Judge relied on Judge Torres ruling in the SEC vs. Ripple lawsuit, where secondary market sales of the token did not satisfy the Howey test, and XRP was free of security status.
Daily digest market movers: Ripple ruling cited in SEC vs. Binance lawsuit
- Judge Analisa Torres’ ruling from July 2023 was used in the SEC vs. Binance lawsuit to determine whether a cryptocurrency is a security in secondary-market sales.
- Judge Jackson dismissed charges against Binance concerning secondary-market sales of its native token, BNB.
- The Ripple ruling laid the basis for dismissing the charges, and the Judge’s decision in the SEC vs. Binance lawsuit provided clarity on the “security” status of cryptocurrencies sold on exchange platforms.
- There has been no update in the SEC vs. Ripple lawsuit since the agency asked for $102.6 million in fines from the payment remittance firm on May 29.
- XRP holders await updates on the lawsuit and are closely following the launch of the stablecoin Real USD (RLUSD).
Technical analysis: XRP makes comeback above $0.48
XRP climbed above the key resistance of $0.48 on Monday. The altcoin extended gains by nearly 1% on the day. Ripple could fill the Fair Value Gap (FVG) between $0.4825 and $0.4841 and then rally to the next key resistance at $0.4955.
This level coincides with the 23.6% Fibonacci retracement of the decline from the March 11 peak of $0.7440 to the April 13 low of $0.4188. Further up, XRP faces resistance at the psychologically important $0.50 level.
The Moving Average Convergence Divergence (MACD) momentum indicator shows underlying positive momentum in the XRP price trend.
XRP/USDT daily chart
On the other hand, the altcoin could find support at $0.4508, the June 7 low for XRP. Further down, the April 13 low at $0.4188 is the key support for Ripple.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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