XRP traded high on Wednesday as investors hope that Ripple Lab, the mother company of XRP will win its prolonged legal battle with the U.S. Securities and Exchange Commission. The sixth most capitalised cryptocurrency broke into a solo rally to trade at $.49 before retracting back.
Investors King understands that XRP rode on the hope that Ripple might win a summary judgement against the Securities and Exchange Commission (SEC). The token jumped more than 20% to outperform the top 10 largest cryptocurrencies by market cap.
It could be recalled that the US regulatory body had taken Ripple Lab to court and accused its executives Brad Garlinghouse and Chris Larsen of selling unregistered securities (XRP) to the public. A position the company and its executives strongly disagree with. This has therefore led to a legal firework between the company and SEC.
The hope to win against the SEC was shared by many big players in the industry. According to the Vice President of Luno, Vijay Ayyar, XRP price rally “is being bolstered by a potential positive outcome in the SEC case.” Similarly, CryptoLaw founder John Deaton predicts that Judge Torres will rule in favour of Ripple executives Brad Garlinghouse and Chris Larsen.
“The case against @bgarlinghouse and @chrislarsensf is OVER. It was over the day it was filed. There’s NO WAY the SEC can meet its burden. The SEC must prove the two executives had actual knowledge #XRP was a security or was reckless in not knowing,” John Daeaton posted on his Twitter page.
Ripple and the SEC have now both submitted their final round of briefs seeking a summary judgement to the case. The case now rests with Judge Analisa Torres of the Southern District of New York, who is expected to issue a verdict soon.
It is not clear when she will make her decision. However, some crypto investors believe an outcome will arrive in the coming days.