XRP is up nearly 9% over the previous 24 hours and 18% on the 7-day chart, recording $0.502 on TradingView at 7:28 p.m. local time.
There are several reasons why XRP is so strong today. First, the network has rolled out significant upgrades in recent months, which may have contributed to the price hike. Second, the expectation that XRP is seen as a commodity rather than a security also contributed to the boost.
XRP Price Chart 4 Hours | Source: TradingView
Ripple, the issuer of XRP, has continued to stand firm in its legal battle with the United States Securities and Exchange Commission (SEC) over the classification of XRP. Ripple insists XRP is not an unlicensed security, while the SEC alleges XRP is a security and Ripple conducted an unregistered securities offering.
The day before XRP rallied, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, claiming the exchange allowed US customers to trade Derivatives without registration. with the CFTC.
The CFTC also classifies major cryptocurrencies like Bitcoin as commodities, which has important implications for the classification of XRP. Some members of the community suggested that if the CFTC's statement was upheld, then XRP could also be considered a commodity. This is a positive development for Ripple's legal case.
Ripple has long asserted that XRP is a commodity, not a security. In January, Ripple's chief technology officer, David Schwarz, tweeted that:
“XRP is a raw commodity that is traded in commerce. This one XRP is treated equally to all other XRP . That is the definition of a product.”
Ripple has argued XRP acts as a currency, similar to Bitcoin and ETH, so it is not subject to securities regulation.
The bullish XRP price was the bright spot in a bleak day for the crypto market. As the legal battle between Ripple and the SEC continues, the classification of XRP remains a matter of contention. However, the recent CFTC lawsuit against Binance has significant implications for the classification of cryptocurrencies as commodities, which could ultimately benefit XRP and Ripple's legal case.
According to AZCoin News
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