XRP token rose as much as 5% in the past 24 hours after reports that the US Securities and Exchange Commission (SEC) landmark case against Ripple was tilting in favor of the blockchain company.
At the time of writing, XRP was trading 2% higher at 46 cents, posting gains for the second day in a row. While bitcoin (BTC) and ether (ETH) fell 1%, sending a nominal drop in the broader crypto market.
The XRP token has added nearly 10% in value in the past week, becoming the biggest gainer among the major tokens.
In 2020, the Securities and Exchange Commission (SEC) sued Ripple over allegations that the company sold unregistered securities. Ripple has historically kept its distance from XRP, the token that powers some of its products, and the XRP Ledger Network. But it is clear that any progress in the case has an impact on the price of XRP.
Earlier this week, a federal judge ruled that the SEC could not seal documents associated with former official William Hinman’s 2018 letter about cryptocurrencies and securities to Ripple, stating that they were “relevant to judicial proceedings.”
District Judge Annalisa Torres, of the US District Court for the Southern District of New York, ruled that the documents associated with this letter, as the former SEC director of Finance Corporation stated that in his opinion, ether was not a security, and could not have been sealed by a court order.
Access to these documents may mean that Ripple’s lawyers can see how Hinman came to this conclusion, which could affect XRP’s private rating as a security. This is considered bullish for XRP tokens by some traders as they seek Ripple’s victory in the court case.
“We are seeing XRP price skyrocketing by double digits, surging above long-term resistance levels, as rumors circulate that Ripple and the SEC may have approved a settlement,” wrote Henry Liu, CEO of cryptocurrency trading platform BTSE. In a Telegram message to CoinDesk.
“Others speculate that Ripple could emerge victorious from the court battle, regardless of which faction is correct, the presumed resolution of the case in favor of Ripple driving this positive momentum,” Liu added.