On Tuesday, a judge made a significant ruling with potential implications for future cryptocurrency regulation. The judge determined that XRP, a crypto token, is not classified as a security, but the activities conducted by Ripple, a prominent XRP promoter, were not entirely legal.
Ripple wins verdict that XRP is not a security, and judge also rules that institutional sales of XRP by Ripple were securities
7/14/2023
In the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the judge concluded that the XRP token itself does not meet the criteria for a security. However, the judge found that Ripple's sales of XRP, totaling $728.9 million, to institutional customers were in violation of securities laws as they constituted an illegal offering of unregistered securities.
This decision has created additional complexities in the realm of cryptocurrency regulation, according to experts. While the XRP token has been deemed not to be a security, Ripple's actions regarding the sale of XRP to institutional investors have been deemed unlawful.
The case between the SEC and Ripple will continue, with a jury tasked with determining whether Ripple executives played a role in facilitating the illegal offering of XRP to institutional investors.
It is worth noting that certain distributions of XRP, such as those conducted algorithmically on exchanges and for employee compensation, were not considered securities offerings.
Following the judge's ruling, the price of XRP experienced a significant increase of approximately 56%.
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