A summary judgment regarding the Ripple and SEC case has been released, with the presiding judge stating that XRP does not fall under the definition of a security.
Judge’s Decision Boosts Hopes
Today, a summary judgment regarding the Ripple and SEC case has been released. The presiding judge in the Ripple case stated that XRP does not fall under the definition of a security. According to the judge, the sale of XRP by Ripple does not constitute an offer of an investment contract.
RIPPLE WINS VERDICT THAT $XRP IS NOT A SECURITY, JUDGE ALSO RULES THAT INSTITUTIONAL SALES OF XRP BY RIPPLE WERE SECURITIES
— CoinOtag EN (@coinotagen) July 13, 2023
The closely followed case by both investors and cryptocurrency enthusiasts has resulted in a victory for Ripple. The judge’s decision stated that XRP does not meet the criteria for being considered a security. This decision also encompassed Ripple’s institutional XRP sales, which are similarly not considered securities.
While this decision provides significant relief for Ripple and XRP enthusiasts, there is still much to be done. The court will soon issue a separate announcement detailing the date of the next hearing and the schedules for related pretrial matters.
Judge Torres, providing additional context to the decision, stated that Ripple’s Programmatic Sales and other distribution channels, as well as the XRP sales conducted by Larsen and Garlinghouse, do not constitute investment contracts. Essentially, this comment excludes these transactions from being classified as securities.
In response to the decision, Ripple’s CEO Brad Garlinghouse made a statement, saying:
“In December 2020, we stated that we were on the right side of the law and history, and today’s decision reaffirms that. Thank you to all who have supported us in obtaining today’s decision, which applies to all crypto innovations in the United States.”
