Last week, Townsend Lansing, Head of Product for CoinShares issued a press release announcing the payments-focused cryptocurrency XRP has overtaken BNB token to rank fourth among all digital assets in terms of market capitalization. According to data from CoinDesk, as of the time of writing, XRP had a market valuation of $41.44 billion, increasing 66% in the previous day alone. The market value of BNB increased by 6.5% to $40.57 billion. The cost of XRP skyrocketed from 47 cents to around 78 cents.
"As such, XRP is not only deemed a security, but questions have arisen regarding the legality of its offering. In regards to these sales, the Court has confirmed that the law was indeed violated, marking a considerable victory for the Securities and Exchange Commission and setting a precedent for its legal actions against other cryptocurrencies," CoinShares Head of Product Townsend Lansing said.
According to a press release issued on July 14, the cryptocurrency XRP, which focuses on payments, has eclipsed BNB token to rank fourth among all digital assets in terms of market capitalization. According to data from CoinDesk, as of the time of writing, XRP had a market valuation of $41.44 billion, increasing 66% in the previous day alone. The market value of BNB increased by 6.5% to $40.57 billion. The cost of XRP skyrocketed from 47 cents to around 78 cents. The rise of the cryptocurrency has been fueled by Ripple Lab's partial triumph in a protracted legal battle with the U.S. Securities and Exchange Commission over the sale of XRP. Ripple's offer and sale of XRP on digital asset exchanges did not constitute offers and sales of investment contracts, as claimed by the SEC, the District Court for the Southern District of New York said on Thursday.
The Court, however, ruled that Ripple had broken securities regulations by selling XRP directly to institutions, hedge funds, and other parties for more than $700 million. After selling XRP worth $1.3 billion, Ripple was sued by the SEC in late 2020 for selling unregistered securities. The XRP cryptocurrency remained under pressure as a result of the regulatory action and some exchanges delisted it, while the overall market closed that year on a high note. The first portion of the decision has made it possible for centralized exchanges to once again list XRP. Gemini is looking towards listing XRP for both spot and derivatives trading, whereas Crypto.com has already taken this action.
Townsend Lansing, the head of product at CoinShares, said that the second half of the judgement has concluded that XRP is a security. The price increase and the optimistic positioning in the perpetual futures market show that traders have not yet concentrated on the second portion of the verdict. With no expiration or settlement date, perpetual futures are similar to ordinary futures contracts. According to Coinglass data, global volume-weighted perpetual futures funding rates have risen to their highest levels at least since December. Open interest-weighted rates are at their highest point in four months. Both imply that the leverage is clearly biased in favor of the bullish side.
