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Investors are again looking at XRP, the payments-focused cryptocurrency with hopes that Ripple Labs (the company which issued the token) will win the battle against the U.S. Securities and Exchange Commission.
In the last week, XRP has rallied more than 57%, hitting a 10-month high of 58 cents.
This bullish sentiment of a positive SEC verdict could also fuel the next altcoin seasons, according to a few analysts.
In 2020, the SEC charged the Ripple Network with selling unregistered securities after the platform sold $1.3 billion worth of XRP. Ripple has long maintained that XRP is a commodity, not a security, as alleged by the SEC.
Securities are more tightly regulated than commodities and demand greater transparency and reporting by companies. Hence, Ripple's victory is likely to bring greater investment into the cryptocurrency market.
If Ripple wins this lawsuit, this would also be a victory for the entire cryptocurrency market, suggesting that altcoins are commodities, not securities, and not subject to the strict regulation of securities by the SEC.