XRP, the native token of Ripple Labs Inc.’s blockchain ecosystem, jumped the most in about seven weeks after investors interpreted a court ruling as favorable for the crypto payments company.
The coin rose as much as 8.6% and was trading at about 46 US cents at 12:45 p.m. in Singapore on Wednesday. Wider crypto markets were subdued, with Bitcoin and a gauge of the top 100 digital assets both little changed.
The Securities and Exchange Commission sued Ripple in 2020, alleging the company failed to register XRP as a security. The case is emblematic of the regulator’s argument that most tokens are securities. The suit is ongoing and the eventual result could have major implications for US digital-asset rules.
Read more: Ripple CEO Garlinghouse Expects a Decision on SEC Suit This Year
As part of the case, a judge denied the agency’s motion to seal documents related to a 2018 speech by former SEC official William Hinman, in which he discussed the application of federal securities laws to digital assets.
The SEC has intensified a crypto crackdown following 2022’s market rout and a string of bankruptcies headlined by the collapse of FTX. SEC Chair Gary Gensler previously said the sector “has built up around non-compliance.”
Ripple’s Chief Executive Officer Brad Garlinghouse said in March that he expects a decision in the case this year. He added the US needs clearer digital-asset rules and that there wasn’t a way for the firm to register XRP with the SEC.
XRP is the sixth-largest cryptocurrency, with a market value of about $24 billion, according to CoinGecko data.
