XRP defied the general bloodbath witnessed in the cryptocurrency market to surge 10% a day after the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance. The reference of bitcoin (BTC), ether (ETH), and litecoin (LTC) as commodities by CFTC would trigger a bullish performance for Ripple native token (XRP).
Is CFTC Suit Against Binance Destroying SEC Allegations of Ripple as Security?
The apparent mention of several cryptos as commodities that CFTC alleges Binance offered trading services without registration triggers speculations of Ripple’s triumph over the US Securities and Exchange Commission (SEC). The matter relates to the case where SEC alleges XRP is unregistered security as the court ruling is anticipated to favor Ripple as data approaches.
The anticipation of Ripple winning the case triggered the XRP surge despite the CFTC filing against the prominent exchange Binance causing a market-wide decline.
XRP weathered the market-wide scare to rally above 8% in Asian morning hours and 10% in 1512 Eastern Time. Several factors are interplaying to propel the XRP price on Tuesday to hover around $0.50 in Asian morning hours.
XRP would better the rally as it tested a five-month high. The rise is partially for the successful upgrades to the XRP Ledger network concluded in the past few months.
XRP Bullish Outlook Linked with Bitcoin Reference as Commodity
Many of the community attribute the bullish outlook portrayed today by XRP tokens to the classification of primary tokens as commodities in the recent CFTC filing against Binance and Changpen Zhao. The community speculates that XRP tokens carry a similar reference as commodities and not security, as claimed by the SEC when lodging a case against Ripple.
Ripple chief technical officer David Schwartz disclosed that the XRP token is a commodity. He added that XRP represented a raw good that holders would trade in commerce and with each equivalent to other XRP tokens.
The illustration fulfills the commodity profile as defined by US regulatory agencies. As such, Schwartz considers that not a single component of XRP value is derived from legal obligations to the rest of the token holders.
The case lodged by SEC bridged the distance that Ripple’s history observes in its relation to XRP. Nonetheless, the links are evident as XRP is the native token powering several Ripple products and the XRP Ledge network. It is critical to note that progression in the SEC v. Ripple Case often triggers XRP price movement.
Although CFTC failed to mention XRP, suing Binance alongside its leader Chanpen Zhao on Monday’s filing featured allegations that the exchange handled unregistered crypto derivatives products. Also, the CFTC accused Binance of instructing US customers to circumvent restrictions by deploying virtual private networks (VPNs).
The lawsuit filed before the Northern District Court of Illinois claims that Binance handled derivatives trading operations by offering various cryptos, including bitcoin, ether, tether, and Binance USD, illustrated as commodities in the suit.
Crypto Market Outlook
The CFTC suit triggered a slight decline in bitcoin to below $27000. Ether would recover from the brief decline. According to CoinGecko data, the total market capitalization declined by 3%.
A contingent of market observers struck optimism citing the mention of primary tokens as commodities by CFTC and not securities as earlier portrayed by the SEC.
Filing a CFTC lawsuit against Binance amplifies the alarm bells that sounded in February when the crypto community speculated that the SEC would crack down on various staking-as-a-service products and protocols.
A scrutiny of XRP performance, as illustrated by CoinGecko data, shows that it is exchanging hands at $0.521823, representing a 10.9% increase, with its daily trading volume surging by 21% to realize $3,681,967,156.
With its price increasing by 33% in the past week and 37.4%, its total market capitalization increased by 10.66% to accomplish $26,023,793,836 as per CoinMarketCap data. While the XRP token price was 84.57% down from the all-time high of $3.4 in January 2018, XRP bullish steam lifted the XRP price from $0.4679 to test $0.5261. It would be interesting to witness whether XRP would hold on to the uptrend as the CFTC v Binance case starts.
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