- Judge’s Ruling: Judge Analisa Torres grants summary judgment in favor of Ripple Labs, stating that the XRP token is not a security, in a case brought forth by the SEC dating back to 2020.
- SEC Lawsuit: The SEC sought to stop Ripple from offering XRP, claiming it was a security and required additional regulation.
- Market Reaction: Following the news, XRP’s price experiences a rapid surge, jumping from $0.45 to $0.61, representing a more than 25% increase at the time of writing.
Ripple Labs, the blockchain technology company behind the XRP cryptocurrency, has achieved a significant legal victory as Judge Analisa Torres ruled in favor of the company in a case brought forth by the Securities and Exchange Commission (SEC). The ruling, which took place in the United States District Court in the Southern District of New York on July 13, declares that the XRP token is not a security.
The SEC lawsuit, filed in 2020, sought to compel Ripple Labs to cease offering its XRP token, alleging that it qualified as a security and required additional regulatory oversight. However, Judge Torres’s recent decision grants summary judgment in favor of Ripple Labs, dismissing the SEC’s claim and affirming that XRP is not a security.
The court documents state, “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.”
The announcement of the favorable ruling had an immediate impact on the price of XRP. Within minutes, the cryptocurrency experienced a sharp surge, catapulting from $0.45 to $0.61. This represents a more than 25% increase at the time of writing, reflecting the market’s positive response to the legal victory for Ripple Labs.
The ruling comes after Ripple CEO Brad Garlinghouse expressed optimism about the case, emphasizing that the fight for cryptocurrency was not over yet. The judge’s decision provides a significant boost to Ripple Labs and the broader XRP community, offering clarity on the regulatory status of the token.
While the ruling marks a crucial milestone for Ripple, it is essential to note that the cryptocurrency market is known for its volatility. Investors should exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Investors are advised to consult with financial professionals and conduct their own analysis before making any investment decisions.
