In a seismic victory for Ripple, Judge Analisa Torres of the Southern District of New York concluded that Ripple sales and other distributions of XRP did not qualify as investment contracts.
The ruling marks a crucial turning point in the legal battle between Ripple and the Securities and Exchange Commission (SEC). In fact, this risky decision led to a meteoric rise of 105% in the price of XRP.
Ripple’s XRP may not be a security after all
After a thorough examination of the reality and economic conditions, Judge Torres By with ripple. It agrees that programmed sales and sales by Ripple executives Chris Larsen and Brad Garlinghouse do not constitute investment contracts.
This ruling effectively exempted a large portion of Ripple’s operations from the SEC’s crackdown.
This pivotal win only partially resolves Ripple’s entanglement with the SEC. The court refused to qualify the investment contract for automated sales and other distributions. However, it held Ripple’s institutional sale of $728.9 million in XRP as an unregistered offering and sale of investment contracts, in contradiction to Section 5 of the Securities Act.
However, Ripple remains steadfast and resolute, and focuses on the positive side of governance.
“We said in December 2020 that we were on the right side of the law, and we will be on the right side of history. Thankful to everyone who helped us reach today’s decision — one dedicated to all crypto innovation in the United States. More to come.” He said Garlinghouse.
In the cryptocurrency industry, this decision marks a watershed moment. Ripple’s ability to support the legality of its XRP sales against the Securities and Exchange Commission (SEC) furthers the resilience of the cryptocurrency market. It even ignited the excitement of investors, thus leading to a massive 105% increase in the price of XRP, from $0.47 to $0.97.
As Ripple prepares for a subsequent trial focused on its institutional sales, the market is eagerly anticipating the trajectory of XRP’s price in the wake of these legal developments.
This is a developing story…
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