top of page
Connecting Dots

The XRP Ruling: A Massive Win for Crypto

On July 13, 2023, after several years, a Federal Judge ruled that XRP is not a security. The decision was one that many in the crypto space have been anxiously awaiting since the initial filing of the lawsuit against Ripple Labs by the United States Securities and Exchange Commission (SEC), and the decision is perceived as especially bullish hot on the heels of the BlackRock ETF application. While many still remain skeptical of the implications of the $XRP ruling, it sets the precedent for digital assets in similar categories and reinforces the long-held belief that most cryptocurrencies fall into the category of commodities rather than securities.

A hand holding a coin representation of Ripple XRP.
Apparently it isn't a security after all.

Bullish News Begets Bullish Behavior

In a matter of less than twelve hours after the decision, $XRP nearly doubled in price. The $XRP ruling also meant that most centralized exchanges that were legally required to cease trading of the asset were legally allowed to reinstate trading. Many long-term holders, or holders whose assets were stuck on CEX accounts for the duration of the legal proceedings were able to resume trading. Interest in the asset was at the forefront and a spike in trading volume followed.

Ripple XRP Chart 1 month view courtesy of CoinMarketCap
It's always nice waking up to a massive green candle.

Crypto centralized exchange darling Coinbase chimed in following the ruling, and resuming trading on their platform may have been one of the largest contributors to the spike in trading volume as Coinbase is still the most accessible crypto trading platform on the market with the second highest trading volume for any cryptocurrency centralized exchange behind Binance.

Regardless of the reasoning, the spike in trading volume for XRP was followed by spikes in other assets as well. $BTC jumped almost a thousand dollars from $30,298 to $31,657. $ETH saw a massive runup from $1,865 to $2,022, and Cardano $ADA jumped from $.28 to almost $.37. Most of these rallies were met with resistance shortly after the massive spike. Long-term holders likely took profit and trading has been mostly downward and sideways since. While the initial post-ruling interest may have subsided, the XRP decision is a landmark case that will have long-lasting implications, if the decision is upheld...

More to Come After the Initial XRP Ruling

While on the surface, the XRP ruling seems like a cut-and-dry decision, the SEC may choose to appeal the federal court's ruling. For the SEC to appeal the case, they will need to compile sufficient evidence in order to support their position and notify the district and request to appeal the decision. The good news is that like any bureaucracy, there are time-constraints for this to happen. The SEC is well-resourced, so if they choose to do so, they will move quickly. The other potential outcome is that the SEC chooses not to appeal the decision, then the XRP ruling would be a final decision.

While an appeal from the SEC could mean the XRP case is heard again at a higher level, the hearing likely won't happen for at least another couple years if it happens at all. There are many factors and circumstances that will ultimately determine whether or not the case will be appealed, and unfortunately, we won't know until we know. The doom and gloom scenario of an appeal and a ruling in the SEC's favor following that appeal is unlikely based on the review of evidence in the initial hearing and the basis of the judge's decision and how $XRP behaves with respect to the Howey Test.

We don't intend to speculate or speak for the United States court system, we can only make inferences based on our understanding of this case, and this is only our opinion. For now, though, the crypto space seems hopeful, and investors are, over all, excited about the decision and bullishly and anxiously awaiting the massive run-up they anticipate will come from the next crypto bull run.


The XRP ruling is a big deal. This case has been a dark shadow over the crypto space for the last few years with some serious pending implications and potential consequences. While this case isn't over until it's over, the decision is a massive win for crypto for now. Don't forget to check out some of our articles below and give us a follow on Twitter @cryptogatemedia.

13 views0 comments


bottom of page