- XRP records 11% surge following CFTC comments
- Ripple’s CEO terms lawsuit as Outrageous
The price of Ripple’s XRP appears to be benefiting from the general cryptocurrency market surge. The third-largest cryptocurrency by market cap is on the rise with 11%, and trading for about $0.24 per coin. In about a month, this is the first time XRP is trading this high. For some months now, the coin has been on a downward trend, temporarily reaching the $0.30 level a few times since August 2019. Unfortunately, its decline as low as $0.19 in late December.
XRP (XRP) Price Today – XRP / USD
XRP has lost over 95% since attaining its all-time high and declines to its lowest level in two years at the end of 2019. Though $0.24 per coin might not be much it sure is a positive start. It also seems like a recent comment from the U.S Commodities Future Trading Commission (CFTC) might influence the price of the coin.
The chairperson of the CFTC, Heath Tarbert, told Cheddar that the Jury is hot on the trails of Ripple’s native token, whether XRP is a security or not. He stated: “It’s unclear. Stay tuned I’d say.”
Commenting further he went thus: “Part of the issue is the jurisdiction we share with the SEC [Securities and Exchange Commission],” he stated. “If it is a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”
Ripple’s CEO Terms Lawsuit as Outrageous
And if it is concluded that XRP is not a security, it’ll be good news for Ripple as they escape a costly lawsuit. This would also influence the price of XRP. Previously in 2018, Bradley Sostack filed a lawsuit against Ripple, accusing them of selling unregistered security.
Refuting the allegations, Ripple alleged that the allegations hold no water and that Sostack’s claim infringes on the statute of limitations. The next hearing of Ripple’s lawsuit is a few days away, and the CEO states that the whole issue is “outrageous.”
The case hearing is slated for January 15th, previously in September 2019, Ripple had filed a motion to dismiss the case.
Ripple argued that if XRP is a security, the federal security regulations state that Stostack should have filed his allegation within three years of the first purchase of XRP, which was in 2013. The company went thus: “it has long and widely been understood that the three-year repose period runs from when security is first offered to the public for sale.” Ripple asked for the case to be “dismissed with prejudice.”