14-7-2023 (NEW YORK) Coinbase Global Inc, a cryptocurrency exchange platform, saw a surge of almost 25 per cent in its share prices on Thursday. This came after a landmark legal win by blockchain company Ripple Labs Inc in a closely-watched lawsuit. The U.S. Securities and Exchange Commission (SEC) had accused Ripple Labs and its executives of selling unregistered securities when conducting a $1.3 billion offering for its XRP token. However, a U.S. District Judge ruled that Ripple Labs did not violate federal securities law by selling its token on public exchanges. This decision sent the value of XRP soaring by up to 74 per cent.
This is the first time in the U.S. that a judge has found against SEC in a case where the agency has alleged a crypto token is a security and subject to its strict investor protection rules. The decision is seen as a positive sign for the future of the crypto market.
Coinbase, which is also embroiled in litigation with the SEC over its trading of crypto tokens, saw its shares surge by 24.5 per cent following the decision, finishing at $107. Other blockchain-related companies such as Riot Platforms Inc, Marathon Digital Holdings Inc, Microstrategy Inc, and Hut 8 Mining Corp also saw their shares rise by 15 per cent, 14.5 per cent, 11.7 per cent, and 17.7 per cent, respectively.
Coinbase said it would allow trading of the XRP token again on its platform in line with the court ruling. “We’ve read Judge [Analisa] Torres’ thoughtful decision. We’ve carefully reviewed our analysis. It’s time to relist,” said Coinbase’s chief legal officer Paul Grewal on Twitter.
Currently, Bitcoin, the world’s largest cryptocurrency, is up by 4.1 per cent at 31,584, while Ethereum, the second-largest cryptocurrency, rose by 6.43 per cent to $1,993.3.
