• The SEC has taken legal action against Ripple, a crypto firm, for not complying with securities regulations.
• Ripple’s President Monica Long expressed optimism that the court case would be decided in her company’s favor.
• Following these comments, XRP experienced a sharp price increase of 20%.
SEC’s Case Against Ripple
The Securities and Exchange Commission (SEC) is taking legal action against crypto firm Ripple for non-compliance with securities regulations. The SEC believes that tokens issued by Ripple are securities and thus the firm did not follow present SEC regulations when issuing them to traders.
Monica Long, the current president of Ripple, expressed optimism that the court case will result in a win for her crypto company. She stated that she believed “the facts and the law” were on their side and was hopeful that the ruling judge would take their side instead of the SEC.
XRP Price Increase
Following Monica Long’s comments regarding their potential victory, XRP – which at the time was at around 45 cents – rose by a whopping 20 percent. Crypto investors had reason to believe that Ripple could potentially win its ongoing court case with the SEC and this resulted in a sharp price hike for XRP.
The SEC has also recently gone after trading platform Kraken in Northern California who were forced to part with a $30 million penalty fee and end all its staking services and activities. In regard to this case, SEC Chair Gary Gensler said: „There’s a handful of tokens that have registered.“
Europe Setting Regulations
Long commented on why she thinks Ripple has a strong chance of being victorious saying: “We’re seeing action through enforcement versus setting clear rules and regulation… Europe is really emerging as a leader in setting really clear regulations and rules that allow crypto companies…“ This could be beneficial to cryptocurrency companies in terms of providing clearer guidance on how they should operate within certain jurisdictions.