Coinbase shares surged by approximately 25% on Thursday after Ripple Labs’ significant legal triumph against the U.S. Securities and Exchange Commission (SEC).
In a groundbreaking ruling, a U.S. District Judge sided with Ripple Labs, dismissing the SEC’s allegations that the company violated federal securities laws by selling its XRP token on public exchanges. The ruling caused XRP’s value to soar by a staggering 74%.
Previously, the SEC accused Ripple Labs and its executives of conducting an unregistered securities offering for XRP, which was introduced in 2012. However, the court’s decision challenges the SEC’s authority over crypto tokens and their classification as securities, subject to strict regulatory oversight.
Coinbase, currently engaged in its own legal battle with the SEC regarding its crypto token trading practices, saw its stock price surge of 24.5% following the court’s ruling. Market participants view this as a positive step, fueling hopes of a favourable outcome to Coinbase’s legal proceedings, inspired by Ripple Labs’ triumph.
The ripple effect of Ripple Labs’ legal victory extended beyond Coinbase, as other cryptocurrency companies also enjoyed significant gains. Riot Platforms surged by an impressive 15%, Marathon Digital Holdings rose by 14.5%, Microstrategy gained 11.7%, and Hut 8 Mining Corp experienced a notable increase of 17.7%.
Coinbase swiftly announced its intention to relist the XRP token on its platform, aligning its decision with the court’s ruling. Paul Grewal, Coinbase’s Chief Legal Officer, expressed confidence in the court’s decision, stating on Twitter, “We’ve carefully reviewed Judge [Analisa] Torres’ thoughtful decision. It’s time to relist.”
Bitcoin, saw a 4.1% increase, reaching a value of $31,584, while Ethereum, the second-largest cryptocurrency, rose by 6.43%, reaching $1,993.3.
