XRP: Ripple Wins Landmark Case Against SEC, XRP Ruled Not a Security
- A judge has ruled Ripple’s XRP token to not be a security in a landmark case.
- The ruling will likely be significant to the SEC’s current approach to crypto regulation.
- XRP managed to secure a more than 73% gain yesterday on the news of the ruling.
Ripple’s battle with the Securities and Exchange Commission (SEC) has finally come to an end, with a judge ruling in the cryptocurrency’s favor. The group's XRP token has been declared not a security by the US district court when sold through an exchange. Some have said that this decision clears up the regulatory fog which has been hanging over the digital asset sector. XRP saw a more than 73% gain yesterday on the news of the ruling.
The court battle, which has been ongoing for around two years, has long been watched by the crypto community. The ruling will likely harm the SEC’s argument against the crypto sector and could decrease its authority and jurisdiction over the space. It also makes clear that the digital assets sector will require its own legal framework if the SEC is seeking to continue its pursuit of increased regulation of the space.
Ripple is a cryptocurrency and digital payment protocol that was created in 2012 by Ripple Labs Inc., a technology company based in San Francisco. Unlike traditional cryptocurrencies like Bitcoin and Ethereum, Ripple aims to facilitate fast and low-cost international money transfers. It was designed to enable secure and instantaneous transactions between financial institutions and individuals. In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that the company conducted an unregistered securities offering by selling XRP. This legal battle has had an impact on the perception and value of XRP, leading to fluctuations in its price and market capitalization.