The cryptocurrency XRP Token XRP/USD from Ripple is soaring Thursday after a U.S. judge issued a favorable ruling in a case dating to 2020.
Here’s a look at how much an investment from the time the case was announced is worth today.
Landmark Court Ruling For Crypto Sector: U.S. District Judge Analisa Torres determined the sale of the XRP token by Ripple is not an offer of “investment contracts.” The ruling comes after Ripple has spent a significant amount of money fighting claims that XRP was a security.
Torres said that some assets can serve as an investment contract, including digital tokens. In the case of the XRP token, it is not a security, according to the ruling.
Alongside the ruling, the judge found Ripple’s sales of XRP to institutions to be in violation of the Securities Act. This ruling could become a key item to watch for the cryptocurrency sector moving forward.
Ripple and its community score a win Thursday with the declaration by the judge that XRP is not a security, which could also set a precedent, as the SEC has alleged that several cryptocurrencies are securities.
The case between the SEC and Ripple remains active, with the potential for a trial by jury or settlement between the two parties moving forward.
Crypto Exchanges Welcome Back XRP News: of the ruling sent the price of the XRP token significantly higher and also has cryptocurrency exchanges adding the token back after prior delistings.
“Given today’s ruling that the sale of XRP on exchanges is not a security, Gemini is exploring the listing of XRP for both spot and derivatives trading,” Gemini tweeted.
Coinbase Global COIN also announced it is adding XRP back.
“Coinbase will re-enable trading for XRP (XRP) on the XRP network. Trading is anticipated to begin later today, if liquidity conditions are met,” Coinbase tweeted.
Ripple praised the ruling with a tweet.
“XRP is not a security. This victory for Ripple is a win for the entire industry and a step toward regulatory clarity in the U.S.A.” Ripple said.
Rep. Tom Emmer (R-MN) also highlighted the significance of the ruling.
“The Ripple case is a monumental development in establishing that a token is separate distinct from an investment contract it may or may not be part of. Now let’s make it law,” Emmer said.
The ruling comes after the SEC charged Ripple and executives Christian Larsen and Bradley Garlinghouse of conducting an unregistered securities offering of $1.3 billion.
The charges were announced on Dec. 22, 2020.
Related Link: How To Buy Ripple (XRP)
If You Invested $1,000 in XRP: The XRP token hit a low of $0.41055 on Dec. 22, 2020, the day the charges were announced.
XRP would fall to a low of $0.1748 on Dec. 29, 2020, hitting new lows for the year. On that day, an investor could have purchased 5,720.82 XRP with $1,000.
The $1,000 investment would be worth $4,701.94 today, representing a gain of 370.2%.
The return of the hypothetical investment in XRP has outperformed the broader stock market.
The same $1,000 invested in the SPDR S&P 500 ETF, which tracks the S&P 500 Index, would be worth $1,211.15 today, representing a gain of 21.1%.
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