Crypto payments giant Ripple has been embroiled in a lawsuit against the US Securities and Exchange Commission (SEC) since late 2020. Now the case is finally coming to a close. The judge has issued a ruling that seems to be very favorable for Ripple.
Judge positive to Ripple and XRP
This is what legal expert and former government employee James K. Filan, who is active in the XRP community, writes on Twitter. Judge Analisa Torres has her verdict issued, showing its belief that Ripple has not sold XRP as an unregistered security.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) July 13, 2023
According to Filan, there will be another hearing in the courtroom in which the case will be decided. Still, we need to keep a close eye on things. XRP sales in the secondary market do not qualify as unregistered securities, according to Torres, but sales in the institutional markets may be. So the final decision has yet to be made. The blockchain analyst Wu Blockchain confirms this.
The Southern District of New York concluded that Ripple’s Programmatic Sales and Other Distributions of XRP did not constitute the offer and sale of investment contracts.
But Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts… pic.twitter.com/VjrEmWVT83
— Wu Blockchain (@WuBlockchain) July 13, 2023
The judge has in fact left the issue open by partly agreeing with both Ripple and the SEC. That means a settlement will take place or a jury will make the final decision.
XRP price rises to a one-year high
Ripple is not completely out of trouble yet, but it is still very positive for the XRP price. The price has risen to its highest point since May 2022, representing a 30% increase in half an hour.
Ripple CEO Brad Garlinghouse writes on Twitter that he is grateful for all the help from Ripple’s supporters. The company has received quite a bit of help, such as from lawyer John Deaton. He has voluntarily joined the lawsuit on behalf of thousands of XRP investors to offer support to Ripple. For example, he has ensured that the lawsuit against LBRY turned out more positively than expected, which may also have helped Ripple.
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023