Ripple Labs notches landmark win in SEC case over XRP cryptocurrency – CNA
The U.S. Securities and Exchange Commission (SEC) has suffered a landmark legal defeat in its case against Ripple Labs Inc. A U.S. judge, Analisa Torres, ruled that Ripple did not violate federal securities law by selling its XRP token on public exchanges. This ruling is significant for the cryptocurrency industry and led to a 75% increase in the value of XRP. While the decision is specific to this case, it may provide support to other crypto companies facing similar disputes with the SEC regarding their products falling under the regulator’s jurisdiction.
However, the judge’s ruling did grant a partial victory to the SEC. It held that Ripple violated federal securities law by selling XRP directly to sophisticated investors. Ripple’s Chief Executive, Brad Garlinghouse, hailed the ruling as a significant win for Ripple and the industry in the United States.
In response to the ruling, Coinbase, the largest U.S. cryptocurrency exchange, announced it would resume trading of XRP on its platform. Coinbase stock experienced a 24% increase, closing at $107 per share.
The case between Ripple and the SEC revolves around the SEC’s claim that Ripple conducted a $1.3 billion unregistered securities offering by selling XRP. The ruling by Judge Torres stated that Ripple’s XRP sales on public cryptocurrency exchanges did not qualify as offers of securities. However, she found that Ripple’s sales to hedge funds and other sophisticated buyers constituted unregistered sales of securities.
This ruling has significant implications for the crypto industry and has sparked calls for Congress to establish clear regulations for digital assets.
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