Crypto Rally After Ripple Win

The lawsuit between Ripple and the Securities and Exchange Commission (SEC) was one of the longest in crypto history. Now the verdict is clear: XRP is not a security. The U.S. District Court in New York ruled that yesterday. The news caused a huge wave of euphoria in the crypto sector. The prices of individual tokens skyrocketed after the decision. There were many double-digit gains.

The rally mostly affects cryptocurrencies that the SEC had previously classified as securities. Besides XRP, the biggest winners include: Stellar (XLM), Lido DAO (LDO), Cardano (ADA), Solana (SOL), Polygon (MATIC) and Chainlink (LINK). Here alone, share price increases ranged between 20 and 60 percent. Total market capitalization rose nearly 7 percent.

Crypto exchanges, the big winners?

For market experts and industry observers, the Ripple trial is considered a case in point. With the decision, the U.S. Securities and Exchange Commission should now find it difficult to classify cryptocurrencies as securities. Overall, a positive signal for Ripple and the entire market, but especially for crypto exchanges.

The court did not view the sale of XRP on trading platforms such as Coinbase, Kraken or Gemini as the sale of securities. Institutional funding rounds, on the other hand, are. "When institutional sales, OTC trading and direct token sales are securities, sales will go back to public order books," said observer Adam Cochran on Twitter. The days of billion-dollar funding rounds might be over for crypto projects.

But for the rally to really take off, U.S. exchanges must first resolve their dispute with the SEC. The exchange regulator overwhelmed several companies, including Coinbase, Kraken and Gemini, with waves of lawsuits. Besides selling unregistered shares, there was also a lack of licenses. After Ripple, all eyes are now on Coinbase. If the crypto exchange achieves similar success, the stage is set for the next crypto rally.