Breaking: Ripple’s XRP Wins Case Against SEC. Not a Security.

Ripple secures victory as judge rules XRP not a security, triggering a 16% surge in its price.

Brad Garlinghouse celebrating with a glass of Champagne in a golden room.
Created by Gabor Kovacs from DailyCoin
  • A judge has ruled that Ripple’s sale of XRP does not constitute an offer of investment contracts.
  • The SEC is likely to appeal the ruling, but for now, Ripple has won a major case.
  • The price of XRP has skyrocketed following the news of the ruling.

Judge Torres delivered a groundbreaking decision, affirming that the sale of Ripple’s XRP does not fall under the category of an investment contract offering.

In a significant victory for Ripple, the ruling clarified that XRP is not classified as a security. Furthermore, the judge concluded that institutional sales of XRP by Ripple are indeed categorized as securities.

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Looking ahead, the court will issue a separate decision to establish the hearing date and the relevant preliminary hearing times, providing further clarity on the proceedings.

The judge emphasized that Ripple’s Programmatic Sales, other distributions, and the XRP sales executed by Chris Larsen and Brad Garlinghouse do not constitute investment contracts, solidifying the judge’s position.

The judge also highlighted that crypto tokens sold to the general public may not be considered securities, adding an important dimension to the ruling.

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Following the reports of this favorable judgment in the ongoing case against the Securities and Exchange Commission of the United States, the price of Ripple’s XRP experienced an explosive surge of up to 16% within minutes.

On the Flipside

  • The SEC will likely appeal the ruling, which could delay or even overturn the decision.
  • The broader implications of this decision may not become clear until further legal precedents are established in the case.

Why This Matters

The judge’s ruling in favor of Ripple and the determination that XRP is not a security carries substantial significance for the crypto industry. This decision brings much-needed clarity to the regulatory landscape surrounding digital assets, reassuring market participants and potentially influencing the way cryptocurrencies are perceived and regulated in the future.

FAQs

Did Ripple win their SEC case?

Ripple has secured a significant victory in their case against the Securities and Exchange Commission (SEC). Judge Torres emphasized that the sales of Ripple XRP do not constitute an investment contract offering. However, it’s important to note that the defendants still await trial and final judgments in the case.

Is Chris Larsen still with Ripple?

Yes, Chris Larsen, one of the co-founders of Ripple, is still associated with the company. He has been involved in legal proceedings regarding the case with the SEC.

What happened between Ripple and SEC?

Ripple, the company behind the cryptocurrency XRP, has been engaged in a legal battle with the Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple, alleging that the company conducted an unregistered securities offering through the sale of XRP. Ripple has vehemently denied these allegations and has been fighting the case in court.

Why is XRP not a security?

The judge’s ruling clarified that XRP is not classified as a security. The court determined that the sales of XRP by Ripple do not fall under the category of an investment contract offer. This distinction is crucial in the case, as securities are subject to specific regulations and requirements under the securities laws. The ruling implies that XRP possesses different characteristics from traditional securities, although the court’s reasoning behind this determination may require further examination once the final judgments are made.

To learn more about the impending verdict in the SEC vs. Ripple case, read here:

Timeframe on SEC vs. Ripple Verdict on the Horizon

To stay updated on the latest developments in the cryptocurrency industry, including stablecoin giant Circle’s shrinking workforce and its global prospects, read here:

Stablecoin Giant Circle Shrinks Workforce but Eyes Global Prospects

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.