The latest change in the case filed by the US Securities and Exchange Commission (SEC) against Binance has had significant repercussions in the cryptocurrency market. Ripple, in particular, hopes to get a more positive result in its own case by highlighting the inconsistencies in the SEC’s classification of some cryptocurrencies as securities.
SEC’s change in Binance case and Ripple’s reaction
Ripple executives expressed great disappointment after the SEC updated its complaint against Binance and targeted some cryptocurrencies. Ripple CEO Brad Garlinghouse criticized the SEC’s inconsistent regulatory practices, saying, “The SEC chairman says the rules are clear, but the SEC fails to understand them and is haphazardly applying them, creating more confusion in the industry.” Ripple’s chief legal officer Stuart Alderoty stated on social media that this decision by the SEC was illogical.
This development in the SEC’s Binance case caused a significant increase in the price of Ripple’s native cryptocurrency XRP. Investors have turned to XRP in the hope that the SEC will take a more flexible approach to classifying XRP as a security. There has also been a significant increase in the accumulation of XRP by large investors (whales). This gives positive signals about the future of XRP.
What is the latest situation in the XRP price?
As a result, Ripple’s native cryptocurrency XRP has been making strong gains following the SEC’s amendment regarding the Binance case regarding the treatment of third-party securities. This development has led many to believe that it could accelerate the resolution of the long-standing SEC Ripple case. The XRP price has increased by more than 9% to pass $0.65, and its market cap has reached $36.5 billion. As a result, XRP has managed to push Circle’s USDC into sixth place. Moreover, XRP whale activity has also skyrocketed in recent weeks.
According to on-chain data provider Santiment, there has been a significant increase in the total number of wallets holding at least 10,000 XRP in the last five weeks. Santiment data also shows that there are currently a total of 279,400 shark and whale addresses on the XRP ledger, marking a return to a six-month peak. So far in 2024, the correlation between the growth of these large wallets and the altcoin’s market cap has been remarkably strong. Another reason behind the XRP rally is that analysts predict that the SEC’s removal of Solana (SOL), Cardano (ADA), Polygon (MATIC), and other altcoins from the Binance lawsuit as ‘securities’ will lead to a faster settlement in the XRP case.
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