Ripple Crypto Industry Scores Partial Win in SEC Court Fight Over XRP
Cryptocurrency industry sees some relief in the latest development
XRP token price surges after the ruling
In a landmark ruling, a US judge has determined that Ripple Labs Inc. did not violate federal securities laws by selling its XRP token on public exchanges. The decision represents a partial victory for the crypto industry, which has long argued that XRP is not a security.
The Securities and Exchange Commission (SEC) had alleged that Ripple Labs Inc. sold XRP as an unregistered security, raising over $1.3 billion in the process. The SEC argued that XRP was an investment contract, which is a type of security that is subject to federal securities laws.
However, the judge disagreed with the SEC's characterization of XRP. The judge found that XRP is a currency, not a security. This is because XRP is used as a medium of exchange, and it is not dependent on the efforts of Ripple Labs Inc. for its value.
The ruling is a significant victory for the crypto industry. It provides clarity on the regulatory status of XRP, and it could help to pave the way for other cryptocurrencies to be classified as currencies rather than securities.
In the wake of the ruling, the price of XRP has surged. XRP has risen 7% in 24 hours to over 64 cents, the highest point since March 25. The increase in price is likely due to increased hopes for a favorable outcome in the SEC's case against Ripple Labs Inc.
Despite the ruling, the SEC's case against Ripple Labs Inc. is still ongoing. The SEC could appeal the ruling, or it could continue to pursue its case against Ripple Labs Inc. on other grounds.
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