XRP Surges Amid Legal Victory and Reserve Inclusion Hopes

Ripple-promoted cryptocurrency XRP has been a subject of intense debate, with critics and supporters alike weighing in on its classification as a security. Pierre Rochard, the research head of Riot Platforms, has recently asserted that XRP is not a security. Rochard, who has been a vocal critic of Ripple, argues that the San Francisco-based blockchain payments startup does not owe investors any utility or other benefits, which is a key criterion for classifying an asset as a security. He further opined that investors in XRP have no recourse against the company if they choose to sell their holdings, which is another reason why XRP should not be considered a security.

Rochard's stance is supported by a July 2023 ruling by Judge Analisa Torres, who granted Ripple a partial victory by declaring that secondary sales of the Ripple-linked token were not securities. This ruling has added fuel to the debate surrounding XRP's classification and its potential inclusion in a strategic digital assets reserve. Recently, a prominent figure expressed his expectation that XRP would be part of such a reserve, alongside other cryptocurrencies. However, critics argue that XRP lacks the real-world presence and decentralization of Bitcoin or Ethereum, making it an unsuitable candidate for inclusion in the reserve.

The lack of plans to list XRP futures by a major exchange has further fueled skepticism about the coin's inclusion in the national reserve. The SEC had previously approved ETFs investing in regulated BTC and ETH futures, trusting the exchange’s monitoring system to tackle potential price manipulation. This has led some to speculate that the SEC's ongoing enforcement lawsuit against Ripple may be nearing a resolution, with the inclusion of XRP in the reserve signaling an imminent conclusion to the legal battle.

Rochard has been a vocal critic of Ripple, lambasting the company as the biggest obstacle to a Bitcoin-only strategic reserve. He has argued that Ripple's aggressive lobbying against such a reserve has hindered its progress. However, Ripple's boss has claimed that the company's efforts are actually boosting the likelihood of a reserve that includes Bitcoin. The CEO has long advocated for a multi-asset US crypto reserve, similar to the one announced by a prominent figure on March 2.

The SEC formally filed its appeal-related opening brief on January 15, challenging the court’s previous ruling on the programmatic XRP sales. Since a pro