The partial victory of Ripple against the SEC in court has led to a significant increase in the price of XRP and relieved altcoins like Cardano (ADA) from the risk of being classified as securities.
A United States court ruled that XRP, the native token of Ripple’s blockchain network, is not a security. This decision in Ripple’s favor has boosted market sentiment and prices across the crypto market.
The overall crypto market cap surpassed $1.25 trillion following the ruling, rising by 5% in 24 hours. Altcoins also rallied strongly, with XRP itself surging by as much as 90%.
Other altcoins that faced the risk of being classified as securities by the SEC also benefited from Ripple’s victory. One such altcoin is Cardano’s ADA token.
ADA price rose over 20% in 24 hours, reaching $0.3747 following the news. At the time of writing, ADA trades at $0.3508 after retracing slightly from its spike.
The SEC had accused both Coinbase and Binance of violating securities laws by listing tokens like ADA for trading. While the SEC did not directly sue Cardano, the negative classification impacted ADA’s price and led to delistings from some exchanges.
The court’s ruling in favor of XRP indicates that algorithmically generated tokens that are traded on exchanges may not be considered securities. This could alleviate some of the pressure on ADA from its potential classification as a security.
However, ADA will continue to face regulatory uncertainty until the SEC clarifies its stance. Unless that happens, the threat of ADA being classified as a security will remain and exert downward pressure on its price.
In summary, while Ripple’s court victory has boosted XRP and the broader crypto market in the short term, ADA and other altcoins still require regulatory clarity from the SEC to resolve their long-term prospects. The court’s decision has certainly eased some fears for now, but a firm stance from the SEC would provide full relief for tokens like ADA.