SEC Excludes Ripple’s XRP as a Security in Kraken Lawsuit

In a recent legal development, the United States Securities and Exchange Commission (SEC) has filed a lawsuit against the cryptocurrency exchange Kraken. The SEC accuses Kraken of operating without the necessary securities registrations, reflecting the agency’s ongoing scrutiny of the crypto sector. Interestingly, in this legal action, Ripple’s native token, XRP, is notably absent from the list of digital assets in question.

Ripple Continues Its Legal Journey

Meanwhile, Ripple itself is navigating its legal challenges with the SEC. Engaged in a long-standing lawsuit, Ripple has secured several preliminary victories in recent months. These successes set the stage for a significant trial slated for the coming spring. This trial could shape the future of Ripple’s interactions with regulatory bodies.

Significantly, this legal action against Kraken isn’t isolated since the SEC has taken similar steps against other major players in the cryptocurrency industry, including Binance and Ripple. The lawsuit alleges that Kraken offered trading services in various unregistered securities, including Solana (SOL), Cardano (ADA), Polygon (MATIC), Internet Computer (ICP), Cosmos (ATOM), Algorand (ALGO), Sandbox (SAND), Decentraland (MANA) and Chiliz (CHZ). This broad sweep by the SEC highlights the agency’s firm stance on regulatory compliance within the crypto sector.

Implications for Ripple and the Crypto Market

While XRP is not part of the SEC’s lawsuit against Kraken, Ripple’s ongoing legal battle with the SEC continues to unfold. This situation has slightly impacted XRP’s market performance, with a minor price decline observed. However, excluding XRP from the recent SEC action against Kraken marks a significant moment for Ripple, differentiating it from other cryptocurrencies under regulatory scrutiny.

However, despite the SEC’s exception, XRP has been on a retracement in the previous 24 hours, with the price dropping from a high of $0.6229 to an intraday low of $0.59. At press time, XRP was trading at $0.5997, a 3.13% dip from the intraday high.

XRP/USD 24-hour price chart (source: CoinGecko)

XRP’s market capitalization fell by 2.665 % during the price decline to $32,444,660,003. However, its 24-hour trading volume climbed by 31.47% to $1,375,983,330, indicating increased trading activity.

Read Also: Ripple Labs Ranks Top 10 in Crypto Lobbying Spending

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.