Following favourable developments in the dispute between Ripple and the SEC, there has been a good feeling toward the sixth-largest cryptocurrency by market capitalisation.
According to a study published by the digital asset management company CoinShares, third-week inflows into XRP-related investment products reached $1.1 million month-to-date (MTD). Interestingly, the asset class has received $11 million in inflows so far this year (YTD).
Ripple vs. SEC: Positive Developments
As the continuing case appears to be going in Ripple’s favour, the development shows that investor confidence in XRP is strengthening. Ripple has been winning the litigation over the past three weeks.
Through various amicus briefs, a dozen companies and trade associations have refuted the SEC’s assertion that XRP is a security. Based on the Howey test, the SEC has claimed over a year that XRP qualifies as a security. Ripple has insisted that XRP is not a security, though.
The top blockchain startup observed that the regulators could not provide a legal theory to support their assertion that XRP is a security. It’s interesting to note that Ripple’s opposition to the SEC has the support of a dozen companies and trade associations.
The firms stated in their individual briefs that the litigation impacted their operations and posed a risk to the US economy.
In addition to receiving support from a dozen businesses, Ripple recently defeated the SEC, a significant triumph. Following months of legal wrangling, the Securities and Exchange Commission, at last, gave Ripple the speeches of William Hinman.
These encouraging developments have restored investors’ faith in XRP. It is noticeable that whale activity for XRP has increased dramatically recently. Ripple whales have made daily transfers worth hundreds of millions of XRP across exchanges.