Ripple Lab’s native token, XRP, experienced a substantial surge of up to 30% on Thursday following a pivotal ruling in an ongoing lawsuit.
The decision, as reported, resulted in a mixed outcome, with motions from both the Securities and Exchange Commission (SEC) and Ripple being granted and denied in part.
Consequently, the case will now proceed to trial, with the issues that were denied summary judgment to be further addressed in the trial proceedings.
In the court filing, the judge declared that Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts, violating Section 5 of the Securities Act.
However, the judge also determined that Ripple’s Programmatic Sales of XRP did not fall under the classification of investment contracts.
Ripple has been engaged in a lengthy legal dispute with the SEC since 2020. The case has involved intense back-and-forth between the two parties, with Ripple contesting the allegations made by the SEC regarding the unregistered sale of securities. This recent ruling represents a crucial milestone in the ongoing legal battle.
