In a highly anticipated legal battle, Ripple Labs has emerged with a victory point against the Securities and Exchange Commission (SEC) in a case that has been ongoing since 2020. Judge Analisa Torres delivered a partial ruling in favor of Ripple, offering some relief to the company and its supporters who have vehemently disputed the classification of their native cryptocurrency, XRP, as a security.
The recent court documents filed on July 13 revealed that Judge Torres granted summary judgment to Ripple Labs, declaring that the XRP token should not be considered a security solely in the context of its programmatic sales on digital asset exchanges. This decision brings a sense of vindication to Ripple, but the complexity of the case becomes apparent as the judge also ruled that XRP should be deemed a security when sold to institutional investors, meeting the conditions outlined in the well-known Howey Test.
The SEC’s lawsuit against Ripple Labs aimed to halt the offering of XRP, arguing that the token required additional regulatory measures due to its alleged status as a security. With the court ruling yielding a split decision, it acknowledges the intricate nature of XRP’s legal classification and underscores the pressing need for further clarity in this ever-evolving realm.
Unsurprisingly, the market swiftly responded to the court’s decision. Within minutes of the news breaking, XRP witnessed an astounding surge, propelling its price from $0.45 to $0.775 as at the time of writing this report, representing an increase of over 27% over the last 24 hours.
Ripple Labs Still Facing Ongoing Legal Battle with SEC
In a legal saga that has captivated the cryptocurrency industry for over two years, Ripple Labs, along with its CEO Brad Garlinghouse and Executive Chairman Chris Larsen, continues to face a formidable challenge from the United States Securities and Exchange Commission (SEC). The regulatory body initially filed a lawsuit against Ripple in December 2020, accusing the company of offering an unregistered security.
The proceedings have been marked by a series of dramatic twists and turns, keeping stakeholders on the edge of their seats. Notably, the release of the “Hinman Documents” during this period added fuel to the fire, creating further intrigue in the case. These documents, previously undisclosed, provided insights into the SEC’s internal discussions on how it views cryptocurrencies, including whether or not they qualify as securities under existing regulations.
Despite the legal onslaught and the uncertainties surrounding Ripple’s future, CEO Brad Garlinghouse has been steadfast in his defiance of the SEC’s allegations. This ongoing resistance has only added to the intrigue and speculation surrounding the case, leaving the crypto community divided in its support for Ripple.