XRP Cleared of Security Status, Jumps 52% in Two Hours
• US Judge Analisa Torres rules that XRP, the native currency of the XRP Ledger, is not a security.
• Ripple Labs has been at odds with the SEC since December 2020 when it was accused of illegally raising $1.3 billion using XRP.
• The judge’s verdict led to a surge in XRP’s price and opened up a potential new framework for token classification in future cases.
Ripple Wins Legal Battle Against SEC
Ripple Labs has emerged victorious in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). On July 13, Federal District judge Analisa Torres ruled that XRP, the native currency of the XRP Ledger (XRP), is not an unregistered security.
Background on SEC vs Ripple Case
Ripple has been at odds with the SEC since December 2020, when the commission alleged that Ripple, the blockchain company, and its co-founders—CEO Bradley Garlinghouse and executive chairman Christian Larsen—raised $1.3 billion in an illegal offering using XRP.
Judge Torres concluded that $728 million worth of Ripple’s institutional sales did indeed constitute such sales. However, she ruled that programmatic sales to the public and XRP distributions to Ripple Labs employees were not unregistered securities sales.
“Hinman Documents” Play Crucial Role
Impact on Price of XRP