- Ripple has scored a significant victory in its legal battle with the SEC.
- The win for Ripple and XRP has been hailed as a win for the crypto industry.
- The ruling has inspired solidarity from critics and supporters alike.
June 13, 2023, will likely be a day to remember for many participants in the crypto markets. After a two-year legal battle with the United States Securities and Exchange Commission, Ripple scored a significant victory as Judge Analisa Torres clarified that XRP is not a security in her summary judgment ruling.
"XRP, as a digital token, is not in and of itself a 'contract, transaction, or scheme' that embodies the Howey requirements of an investment contract," the judge explained in her ruling, holding the same for XRP sold on exchanges.
The clarification has sent a wave of euphoria and solidarity across the crypto community. It represents the industry’s first major victory against the U.S. SEC, which has continued to assert jurisdiction over the nascent market, arguing that most digital assets are unregistered securities.
Ripple Win Is a Win for the Industry
In arguably the strongest showing of support, crypto exchanges like Coinbase, Crypto.com, Gemini, and Kraken, which previously delisted XRP over fears of enforcement, have now announced that they are relisting the asset. Coinbase asserted that a win for Ripple is a win for the crypto industry while announcing its decision.
Following the summary judgment ruling, Ripple and the XRP community have received nods from critics and supporters alike. Cinneamhain Ventures Partner Adam Cochran disclosing that he had purchased 1 XRP in solidarity, admitted that he had been tough on Ripple but could not help but respect the firm’s resilience.
Cochran made a free mint commemorative NFT on Zora to celebrate the ruling.
The XRP community also received a nod from Binance Chief Executive Officer Changpeng “CZ” Zhao, who tweeted “XRP,” adding, “It’s less about winning or losing, it’s about on the right side of the people,” in a follow-up tweet.
The crypto industry’s excitement has been mirrored in price action over the past 24 hours. Led by XRP, several altcoins have posted double-digit percentage gains following the ruling.
On the Flipside
- The judge still held that some of Ripple’s institutional sales of XRP represented unregistered securities offerings.
- The SEC is expected to appeal the decision.
- The case is not entirely closed but has been sent to trial.
Why This Matters
The summary judgment ruling in the Ripple case represents the crypto industry’s biggest win in its fight with the SEC. The ruling will likely have ripple effects on other SEC crypto enforcement actions.
Read this to learn more about the landmark ruling in the Ripple case:
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