In a significant legal victory, Ripple Labs emerged triumphant in a case brought by the Securities and Exchange Commission (SEC) dating back to 2020.
On July 13, Judge Analisa Torres of the United States District Court in the Southern District of New York ruled in favor of Ripple Labs, declaring that the XRP token is not a security. This ruling has far-reaching implications for Ripple and the broader cryptocurrency industry.
The SEC’s lawsuit aimed to force Ripple to cease offering its XRP token, arguing that it qualified as a security and therefore necessitated additional regulatory measures.
However, court documents filed on July 13 revealed that Judge Torres had granted summary judgment in favor of Ripple Labs, dismissing the SEC’s claims.
According to the court documents, the judge granted summary judgment in favor of Ripple Labs concerning the Programmatic Sales, Other Distributions, and sales made by Larsen and Garlinghouse.
However, the judgment was denied with respect to Institutional Sales. This ruling validates Ripple’s position that XRP should not be classified as a security, offering a significant boost to the company’s reputation and market standing.
The news of the favorable judgment had an immediate impact on the price of XRP. Within minutes of the announcement, the token’s value surged from $0.45 to $0.61, representing a remarkable increase of over 25% at the time of writing this article.
Investors and cryptocurrency enthusiasts closely monitoring the case were thrilled by the ruling and demonstrated their confidence in XRP’s future prospects.
The legal battle between Ripple and the SEC has been ongoing since December 2020 when the regulatory body sued Ripple, along with its chief executives, Brad Garlinghouse and Chris Larsen.
The allegations revolved around the company’s alleged offering of an unregistered security. Throughout the three-year legal saga, the case witnessed dramatic twists and turns, including the release of the controversial “Hinman Documents” and Garlinghouse’s unwavering defiance against the SEC’s accusations.