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HomeCrypto NewsMarketXRP Wins Against SEC, Rallies 30%, Becomes Only Crypto With Regulatory Clarity in US

XRP Wins Against SEC, Rallies 30%, Becomes Only Crypto With Regulatory Clarity in US


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The final ruling for the SEC vs. Ripple lawsuit has officially come, declaring that most of Ripple’s sales of XRP did not constitute an investment contract.

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Following an enduring and protracted legal battle spanning two and a half years, the U.S. SEC and Ripple have at long last obtained a verdict regarding the legal dispute concerning the classification of XRP. Recall that the SEC alleged that Ripple sold XRP as an unregistered security.

Judge Torres’ final ruling stems from motions for summary judgment filed by both parties, seeking to resolve the case without a trial based on facts and the law. 

Conclusively, the judge rules that XRP in itself is not a security, but a digital token. This is in line with the argument presented by John Deaton. The ruling essentially makes XRP the ONLY crypto asset that has gone through trial and received full regulatory clarity.

Image Source: https://twitter.com/CryptoLawUS/status/1679525596961882113?
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The judge further rules on the sale of XRP by Ripple. This ruling is divided into four parts, each addressing different types of XRP sales or distributions by Ripple and its executives.

Programmatic Sales: These pertain to the sale of XRP through open market channels, such as online platforms or brokers. In relation to this, the judge ruled in favor of Ripple’s motion for summary judgment, concurring that these sales were not classified as securities offerings and did not contravene the law.

Other Distributions: These encompass the distribution of XRP for various intentions, such as incentives, donations, or grants. In this aspect as well, the judge upheld Ripple’s motion for summary judgment, concurring that these distributions were not considered securities offerings and did not breach any legal provisions.

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Larsen’s and Garlinghouse’s sales: These are sales of XRP by Ripple executives Chris Larsen and Brad Garlinghouse. The judge also granted Ripple’s motion for summary judgment on these sales, meaning that she agreed with Ripple that these sales were not securities offerings and did not violate the law.

Institutional Sales: These refer to the transactions involving the sale of XRP to major investors or institutions, including hedge funds, banks, or exchanges. In this regard, the judge sided with the SEC’s motion for summary judgment, affirming that these sales were unregistered securities offerings and infringed upon the law.

In summary, the ruling means that the judge found that only some of Ripple’s XRP sales were illegal securities offerings, while most of them were legal commodity trades. 

XRP Rallies 30%

This is a mixed outcome for both parties, as neither side got everything they wanted. The case is not over yet, as there may be appeals or further proceedings to determine the damages or penalties for illegal sales. 

The court failed to address whether secondary sales of XRP are a security or not. “Whether a secondary market sale constitutes an offer or sale of an investment contract would depend on the totality of circumstances and the economic reality of that specific contract, transaction, or scheme,” Judge Torres ruled. She then referred to the the lawsuits involving Telegram and LBRY

Following the ruling, XRP has rallied by 30%, finally reclaiming the $0.60 price point for the first time this year due to massive demand. The asset has broken above numerous resistance points, currently trading for $0.6046 as of press time.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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