In a seismic victory for Ripple, Judge Analisa Torres of the Southern District of New York has concluded that Ripple’s Programmatic 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). Indeed, this momentous decision resulted in a meteoric 105% surge in the XRP price.
Ripple’s XRP May Not Be a Security After All
After a comprehensive examination of the economic realities and circumstances, Judge Torres sided with Ripple. She agreed that the Programmatic Sales and sales by Ripple’s executives, Chris Larsen and Brad Garlinghouse, do not constitute investment contracts.
This ruling effectively exonerated a significant portion of Ripple’s operations from the SEC’s clampdown.
The pivotal win only partially resolves Ripple’s entanglement with the SEC. The court has negated the investment contract characterization for Programmatic Sales and other distributions. However, it held Ripple’s Institutional Sales of $728.9 million in XRP as the unregistered offer and sale of investment contracts, contravening Section 5 of the Securities Act.
Still, Ripple remains undeterred and resolute, focusing on the positive aspect of the judgment.
“We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come,” said Garlinghouse.
In the crypto industry, this decision marks a seminal moment. Ripple’s ability to uphold the legality of its XRP sales against the SEC solidifies the resilience of the crypto market. It even ignited investor enthusiasm and consequently fueled a substantial 105% increase in XRP’s price, going from $0.47 to $0.97.
As Ripple prepares for the subsequent trial focusing on their Institutional Sales, the market eagerly anticipates the trajectory of XRP’s price in the wake of these legal developments.
This is a developing story…
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