One of the hottest cryptocurrencies right now is XRP (CRYPTO: XRP). It's up more than 30% over the past seven days, and approximately 50% since mid-June, when it was trading at just $0.30. Across social media, the "XRP Army" is mobilizing, with supporters convinced that this former crypto darling is on the cusp of a new bull cycle. 

So what's all the excitement about? There is growing speculation that the Securities and Exchange Commission (SEC) will finally settle its long-standing case against XRP sometime in mid-November. All signs now suggest that the ruling will be favorable for XRP, and that's why XRP is pumping right now.

The fundamental question in the SEC case is whether XRP is a security or a crypto. In its December 2020 lawsuit, the SEC claimed that XRP is a security, despite all signs seeming to suggest that XRP is a crypto. The general consensus now is that, if an asset can be shown to be a simple replacement for a traditional fiat currency (e.g. the dollar), then it is not a security. However, if an asset constitutes an "investment contract" in which people are investing money in a common enterprise with the reasonable expectation of making a profit together, then it is a security. If XRP is considered to be a security, then it would be bad news and XRP could be facing huge fines or penalties. However, if XRP is considered to be a crypto, then this could finally clear the way for the future growth of its Ripple payment network.

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Source Fool.com