- July 14, 2023
- Posted by: [email protected]
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In a significant turn of events, Ripple Labs has emerged triumphant in its long-standing legal battle against the Securities and Exchange Commission (SEC). Judge Analisa Torres of the United States District Court for the Southern District of New York decided in favour of Ripple, dismissing the SEC’s arguments that XRP, Ripple’s native cryptocurrency, should be classified as a security.
The case, which commenced in 2020, has been closely watched by the crypto community, and Ripple CEO Brad Garlinghouse remained optimistic about the outcome. He noted that, while this victory was significant, the fight for cryptocurrency acceptance and legitimacy was far from over.
The ruling of Judge Torres was detailed in court records filed on July 13. She granted Ripple Labs summary judgement, recognising that XRP is not a security. This decision is a setback for the SEC, which sought to prevent Ripple’s XRP issuance, claiming that it required more regulation due to its classification as a security.
The court documents further reveal that the motion for summary judgement filed by the defendants was granted with respect to the Programmatic Sales, Other Distributions, and sales made by Larsen and Garlinghouse. However, it was denied in relation to the Institutional Sales.
The market swiftly reacted to this verdict, with the price of XRP rising from $0.45 to $0.61 in minutes. This is a significant increase of more than 25% since the publication of this article.
The legal battle between Ripple and the SEC began in December 2020, when the regulatory body filed a lawsuit against Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen. The SEC alleged that Ripple had been offering an unregistered security, setting the stage for an intense legal confrontation.
Throughout the course of the proceedings, the case has been marked by dramatic twists and turns. This includes the revelation of the “Hinman Documents” and Garlinghouse’s continued defiance against the SEC’s allegations.
The news of Ripple’s victory and the subsequent surge in the price of XRP have generated an atmosphere of jubilation within the crypto community. This outcome is seen as a significant win for Ripple and potentially carries broader implications for the classification of cryptocurrencies as securities.
While this ruling provides Ripple with some respite, it also underscores the need for continued efforts to shape the regulatory landscape surrounding cryptocurrencies. The battle for crypto acceptance and understanding continues, but for now, Ripple can celebrate this landmark victory in its ongoing struggle against the SEC.
