Ripple (XRP) rose to a five-month high on March 28th, defying the overall decline in the cryptocurrency market due to bad news from Binance. XRP was up 3% from 24 hours ago, and 20% form seven days, recording $0.502 on TradingView at 8:28 am New York time.
There are several reasons why XRP surged on this day. First, the network has undergone significant upgrades in recent months, which may have contributed to the price increase. Second, the expectation that XRP could be considered a commodity rather than security has also driven the rally.
Ripple, the issuer of XRP, has been fighting a legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP. Ripple claims that XRP is an unlicensed security, while the SEC alleges that XRP is a security and that Ripple conducted an unregistered securities offering.
The day before XRP’s rise, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, a major cryptocurrency exchange, claiming that Binance had allowed U.S. customers to trade derivatives without being registered with the CFTC.
The CFTC also classified major cryptocurrencies such as Bitcoin as commodities, which could have significant implications for the classification of XRP. Some members of the cryptocurrency community have suggested that if the CFTC’s claim is upheld, XRP could also be considered a commodity, which could be a positive development for Ripple’s legal case.
Ripple has long maintained that XRP is a commodity, not a security. In January, Ripple’s chief technology officer, David Schwarz, tweeted that “XRP is a raw commodity traded in commerce. One XRP is treated equal to all other XRPs. That is the very definition of a product.” Ripple has argued that XRP functions as a currency, similar to Bitcoin and Ethereum, and is not subject to securities regulation.
XRP’s rise was a bright spot in an otherwise bleak day for the cryptocurrency market. As the legal battle between Ripple and the SEC continues, the classification of XRP remains a contentious issue. However, the CFTC’s recent lawsuit against Binance could have significant implications for the classification of cryptocurrencies as commodities, which could ultimately benefit XRP and Ripple’s legal case.
Read more:
- Pro-Ripple Attorney Predicts Verdict In SEC Lawsuit Coming Soon
- XRP Price Might Also Be Boosted By Broader Crypto Market Sentiment
- XRP Could See A Significant Price Surge If Ripple Prevails In Its Ongoing Legal Battle With SEC