Ripple Labs Secures Partial Victory in Lawsuit Against SEC, XRP Surges Over 25%
Ripple Labs has achieved a significant milestone in its ongoing legal battle against the Securities and Exchange Commission (SEC).
In a ruling on July 13, Judge Analisa Torres of the Southern District of New York provided a partial victory for Ripple Labs in a case that has been closely watched by the cryptocurrency community.
This development carries significant implications for Ripple and its digital asset, XRP.
The Verdict: XRP Not Considered a Security in Programmatic Sales
Judge Torres’ ruling granted summary judgment in favor of Ripple Labs, stating that the XRP token, which has been subject to controversy, is not considered a security.
However, this determination applies only to programmatic sales conducted on digital asset exchanges.
The court recognized that the Howey Test, a legal standard used to determine if an asset qualifies as a security, does not classify XRP as a security in this specific context.
SEC’s Victory: XRP Classified as Security in Institutional Sales
Despite Ripple’s partial victory, the SEC also achieved a favorable outcome.
Judge Torres ruled that XRP should be classified as a security when sold to institutional investors.
The court concluded that the criteria outlined in the Howey Test were met in these cases.
SEC Lawsuit Against Ripple: Allegations of Unregistered Security
The SEC’s lawsuit against Ripple aimed to halt the offering of the XRP token, claiming that it was an unregistered security and required additional regulatory measures.
Judge Torres’ ruling addressed different aspects of the lawsuit: “Defendants’ motion for summary judgment is GRANTED as to the Programmatic Sales, the Other Distributions, and Larsen’s and Garlinghouse’s sales, and DENIED as to the Institutional Sales.”
A huge win today – as a matter of law - XRP is not a security. Also a matter of law - sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, to charities, to employees are not securities.— Stuart Alderoty (@s_alderoty) July 13, 2023
Immediate Impact: XRP Price Surges Over 25%
The announcement of Ripple’s partial victory had an immediate impact on the price of XRP.
Within minutes, the token’s value skyrocketed from $0.45 to $0.61, reflecting an impressive surge of over 25% at the time of writing.
A Lengthy Legal Battle and Intriguing Developments
The legal clash between Ripple and the SEC originated in December 2020 when the regulatory body filed a lawsuit against Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen.
The case has witnessed various intriguing developments, including the emergence of the “Hinman Documents” and Garlinghouse’s staunch defiance in response to the SEC’s allegations.
Community Response: Optimism and Excitement
The crypto community has responded with jubilation to the recent court ruling, showcasing widespread optimism across different platforms.
The surge in XRP’s price adds to the excitement generated by this significant development for Ripple Labs and the future of its cryptocurrency.