Ripple Wins Against SEC After 3 Years Of Lawsuit Led To XRP Surges Over 30%
- Judge Analisa Torres rules in favor of Ripple Labs, stating that XRP is not a security in the case brought by the SEC.
- The court recognizes the sale of XRP as not constituting investment solicitation, extending the ruling to institutional sales by Ripple.
- After more than three years, the company secured a major win in the legal battle, but further proceedings are expected as the court prepares for the next hearing.
In a highly anticipated ruling, Judge Analisa Torres delivered a significant victory for Ripple Labs in the case brought against them by the U.S. Securities and Exchange Commission (SEC).
The judge declared that the digital asset XRP, associated with Ripple, does not meet the criteria to be classified as a security.
The decision, made on July 13, came in response to the SEC’s petition to halt the offering of XRP tokens, arguing that they should be subject to additional regulatory measures due to their classification as securities. However, Judge Torres granted summary judgment in favor of Ripple Labs, validating their claim that XRP does not fall under the definition of security.
Furthermore, Judge Torres affirmed that the sale of XRP does not constitute an investment solicitation, providing further support for Ripple’s position. This ruling extends its impact to institutional sales of XRP by Ripple, which was also deemed not to be securities.
The outcome of this case, closely followed by both investors and cryptocurrency enthusiasts, marks a significant milestone for Ripple. After more than three years of legal battles, the judge’s decision represents a decisive win for the company and its supporters.
While the ruling provides a sense of relief for Ripple and its community, there are still forthcoming developments to anticipate. The court is expected to release a separate announcement detailing the upcoming hearing date and schedules for any associated preliminary proceedings.
In her ruling, Judge Torres emphasized that Ripple’s Programmatic Sales and other distribution channels, as well as XRP sales conducted by key figures such as Chris Larsen and Brad Garlinghouse, do not constitute investment contracts. Consequently, these transactions are excluded from the securities classification.
The judge’s interpretation of the case highlights the complexity and significance of determining whether digital assets should be classified as securities, an issue of great relevance to the evolving landscape of cryptocurrencies.
As the company celebrates this significant legal victory, industry observers eagerly await further developments in the ongoing legal battles surrounding digital assets and their regulatory status.
According to the news, XRP has skyrocketed more than 30% and reached its highest level in over a year. Currently, the token is trading at $0.61.
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