In a significant legal development, Ripple Labs has secured a win in the United States District Court in the Southern District of New York. On July 13, Judge Analisa Torres ruled in favor of Ripple Labs in a case brought forth by the Securities and Exchange Commission (SEC) dating back to 2020.
The court documents reveal that Judge Torres granted summary judgment in favor of Ripple Labs, determining that the XRP token is not a security. The SEC lawsuit aimed to halt Ripple from offering its XRP token, arguing that it qualified as a security and required additional regulation.
According to the court documents, the motion for summary judgment was granted for the Programmatic Sales, Other Distributions, and the sales made by Ripple’s executives Chris Larsen and Brad Garlinghouse. However, it was denied for the Institutional Sales.
Following the news, the price of XRP experienced a rapid surge, jumping from $0.45 to $0.61 within minutes. As of the time of writing, this represents a more than 25% increase in the token’s value.
The legal battle between Ripple and the SEC began in December 2020 when the SEC filed a lawsuit against Ripple, Brad Garlinghouse, and Chris Larsen, alleging that the company had offered an unregistered security. The case has seen various dramatic twists and turns, including the release of the “Hinman Documents” and continued resistance from Brad Garlinghouse against the SEC’s allegations.
The ruling has sparked jubilation and celebration within the crypto community, reflecting the positive sentiment surrounding Ripple’s victory and the implications for the future of XRP.
