Ripple Labs won the lawsuit in United States District Court in the Southern District of New York. Judge Analisa Torres has ruled in favor of the crypto company after the US SEC filed a case against Ripple in 2020.
XRP is not security
According to documents filed today, the judge has issued a preliminary injunction in favor of Ripple Labs, ruling that the Ripple (XRP) token is not a security.
The SEC lawsuit sought to force Ripple to stop offering its XRP token under the premise that XRP was safety and therefore required additional regulation. Court documents say the following:
Defendants’ motion for summary judgment is ALLOWED with respect to the programmatic sale, the other distributions, and the sales of Larsen and Garlinghouse, and DENIED with respect to the institutional sale.
XRP price is rising sharply
Within minutes of the news breaking, the price of XRP has catapulted from $0.45 to almost $0.61. This increases the token by over 29% in 24 hours.
The case against Ripple has been ongoing since December 2020, when the SEC sued Ripple and its 2 CEOs, Brad Garlinghouse and Chris Larsen, over allegations that the company sold an unregistered security.
In the 3 or so years since then, the lawsuit has seen its fair share of dramatic intrigue. These include, for example, the release of the “Hinman Documents” and Garlinghouse’s continued opposition to the SEC’s allegations.
Along with the tangible movement demonstrated by the XRP token pumping on the news, the general sentiment in the crypto community seems to be one of cheer. It is not yet known what this means for other cryptocurrencies.
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