- XRP price surged by 7.4% over the last 24 hours.
- The price surge follows the release of Hinman Doc.
- Ripple vs. SEC lawsuit has been prolonged for over two years.
XRP prices experienced a 7.4% increase over the past 24 hours, defying minor gains observed in the broader cryptocurrency market. This surge in value is likely attributed to traders speculating on a positive outcome for Ripple Labs in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC).
The price rally coincided with the release of documents related to William Hinman, the former director of the SEC’s Division of Corporation Finance from 2017 to 2020. As part of the ongoing legal proceedings between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), these documents were publicly disclosed.
Hinman doc has importance for XRP vs. SEC outcome
In a 2018 speech, Hinman expressed his perspective that bitcoin (BTC) and ether (ETH) should not be classified as securities. Emails from Hinman further indicated that there was no need to regulate Ether as a security based on its current offering.
Ripple Labs has seized upon Hinman’s remarks to support its argument that XRP should not be considered a security, which could potentially lead to a favorable outcome for the company. The lawsuit, initiated by the SEC in 2020, alleges that Ripple engaged in the sale of unregistered securities.
Ripple has historically maintained a distinction between itself and XRP, which serves as the token powering certain products and the XRP Ledger network. However, developments in the legal case have a direct impact on XRP prices. XRP is trading at $0.5278 at press time and it is also up by 3.12% in the last seven days.
