Ripple has won a significant victory in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC), as a U.S. district judge ruled that the company’s sale of XRP tokens does not violate federal securities laws.
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The ruling states that XRP is not a security, giving Ripple and the entire crypto industry a big boost
Brad Garlinghouse, the CEO of Ripple, expressed his excitement about the ruling on Twitter, stating that the company has always been on the right side of the law. He thanked everyone who had supported Ripple throughout the legal process and emphasized that the decision was significant for crypto innovation in the United States.
Stuart Alderoty, Chief Legal Officer of Ripple, explained the court’s decision, stating that XRP was not considered a security. However, the court considered direct sales of XRP to institutional customers as an investment contract, meaning that only those institutional sales are subject to further prosecution.
The ruling also acknowledged that Ripple’s marketing efforts targeted institutional investors and portrayed XRP as a speculative investment that was dependent on the company’s development of the underlying blockchain infrastructure. The court will now decide whether Brad Garlinghouse and Chris Larsen, Ripple’s co-founder and former CEO, contributed to the company’s violation of the law.
News of Ripple’s victory had an immediate impact on the price of XRP. Within the last 24 hours, XRP experienced a significant increase and reached $0.7892, which is an increase of 67.27%. The cryptocurrency also climbed in the market capitalization ranking, securing fourth place with a total market capitalization of $41.46 billion. Trading volume for XRP increased by a staggering 1700% over the same period.
Coinbase, one of the leading cryptocurrency exchanges, celebrated Ripple’s legal victory and announced the relisting of XRP on its platform. The decision to relist XRP came after the SEC ruled that sales of the token on the secondary market are not equivalent to securities. Coinbase removed XRP from its platform in January 2021 due to the SEC’s charges against Ripple. With Ripple’s victory, Coinbase has now taken the opportunity to add XRP back into its trading options.
The court ruling in favor of Ripple and the subsequent rise in XRP price have significant implications for the crypto industry
It reaffirms the position that XRP is not classified as a security, providing regulatory clarity for the token and potentially influencing similar legal cases involving other cryptocurrencies. The victory also marks a turning point for Ripple and inspires confidence in its future prospects.
However, it is important to keep in mind that the cryptocurrency market remains highly volatile and investors should exercise caution. Regulatory frameworks and litigation can quickly impact market dynamics. To successfully navigate the crypto space, it is important to stay informed and conduct thorough research.
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First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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