In an unequivocal victory for the crypto market, Judge Analisa Torres of the Southern District of New York has issued a critical ruling in the SEC vs. Ripple lawsuit.
The judge deemed Ripple’s Programmatic Sales and other distributions of XRP on public exchanges not to qualify as investment contracts, sparking widespread celebration among prominent figures in the crypto industry.
SEC vs. Ripple: Crypto Industry Leaders Celebrate
Gemini co-founder, Cameron Winklevoss, hailed the ruling as a “watershed moment” that fundamentally redefines the SEC’s jurisdiction over digital assets.
“The sale of XRP on exchanges is not a security. Which means the sales of all cryptos on exchanges are not securities and SEC and Gary Gensler have no jurisdiction over them,” said Winklevoss.
Echoing this sentiment, defense lawyer James K. Filan emphasized the wider implications of the judgement for secondary market sales.
“This is to me the most important part of the decision. Programmatic Sales are not securities, and because a Programmatic Buyer stood in the same shoes as a secondary market purchaser, secondary market sales are not investment contracts — not securities,” said Filan.
US Congressman Tom Emmer also highlighted the significance of the decision. He pointed out that it sets a key precedent in distinguishing a token from any investment contract it may or may not be part of.
“The Ripple case is a monumental development… Now, let’s make it law,” said Emmer.
The distinction between Ripple’s Institutional Sales and Programmatic Sales formed the crux of the court’s ruling. Analyst Lex Moskovski saw it as a “rare win for the little guy, for once.”
This sentiment was echoed by Adam Cochran, partner at Cinneamhain Ventures, who celebrated the ruling as a “surprisingly big win for XRP.”
Click here to read more about how the price of Ripple’s XRP nearly doubled after the pivotal win in the SEC lawsuit.
Other notable figures in the crypto community also shared their approval. For instance, Cardano founder, Charles Hoskinson, congratulated Ripple for achieving such a significant milestone.
“Well done XRP. One small step for XRP nation, one giant leap for cryptocurrencies,” said Hoskinson.
Partner at Placeholder, Chris Burniske, drove home the ripple effect this ruling could have on the broader market.
“If XRP isn’t a security… ETH isn’t a security, BNB isn’t a security, ADA isn’t a security, SOL isn’t a security, MATIC isn’t a security, ATOM isn’t a security, FIL isn’t a security, ICP isn’t a security… And so on,” said Burniske.
The reaction from Ripple CEO Brad Garlinghouse encapsulated the enthusiasm felt by the crypto community. He highlighted the precedent set by the 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. This is a now a matter of law,” said Garlinghouse.
Overall, the ruling marks a crucial milestone in the SEC vs. Ripple battle, defining a new era for regulating cryptocurrencies. The decision stands as a monumental victory, not just for Ripple, but for the entire cryptocurrency community.
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