US Judge Analisa Torres has ruled in favor of Ripple, ruling that XRP is not a security.
Ripple and its executives have won another court battle against the Securities and Exchange Commission (SEC). On July 13, Judge Analisa Torres of the Southern District Court of New York ruled in favor of the company responsible for issuing XRP, Ripple, in the case it has been pursuing against the SEC since 2020.
According to the judge's ruling, XRP does not constitute an investment contract and therefore does not classify as a value or security before the securities laws.
Brad Garlinghouse, co-founder and CEO of Ripple, commented that Judge Torres’ ruling in favor of his company will likely set a positive precedent for other cryptocurrencies and tokens in the United States, as the SEC had stated on many occasions that almost all crypto assets, except for Bitcoin, are inherently securities under U.S. law. Garlinghouse also told Bloomberg that the recent ruling will open up new business opportunities for Ripple.
Ripple's long-running court battle with the SEC began in December 2020, when the securities regulator filed a lawsuit against the crypto firm for unauthorized sale of XRP tokens. At the time, the SEC noted that Ripple had failed to file a registration statement regarding the pre-sale of XRP and had sold the cryptocurrency as an "investment contract" to investors, accusing the company of violating securities laws.
Garlinghouse and Chris Larsen, one of Ripple's co-founders, were also charged by the securities regulator with violating U.S. securities and investor protection laws.
This demand is considered key to the classification of other cryptocurrencies and tokens as securities in the United States under the Howey test and to help determine SEC oversight of the crypto industry, so it has been in the spotlight of the entire crypto industry.
A big win for Ripple
Ripple’s chief legal officer Stuart Alderoty called Judge Analisa Torres’ ruling a huge victory for Ripple, XRP, and the crypto industry. However, on Twitter, Alderoty also acknowledged that the company did violate U.S. securities laws, which is why the SEC has been partially successful in the case.
Following the court ruling, Alderoty said the court had determined that direct sales of XRP to institutional clients did constitute an investment contract, so the institutional sale of the cryptocurrency violated U.S. securities laws. “There will be further court proceedings on just these institutional sales as per the Court’s order,” Indian the company's general counsel, which could impact companies and venture capitalists who bought XRP.
Meanwhile, the price of XRP has reached its highest level since Q2022 XNUMX.
Source: CoinMarketCap
The cryptocurrency created by Ripple is listed on the market with a price of $0,75 dollars per unit, at press time. XRP rose to $0,88 on July 13, ranking as one of the biggest gainers in the crypto market this week. XRP’s current market cap is $39.690 billion, according to data from CoinMarketCap.
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