A US judge has ruled that XRP, the native cryptocurrency of Ripple, is not a security. The ruling, which was handed down by Judge Analisa Torres of the Southern District of New York, is a major victory for Ripple and its co-founders, Brad Garlinghouse and Chris Larsen.
The SEC had sued Ripple in December 2020, alleging that the company had raised $1.3 billion by selling XRP through unregistered security transactions. Ripple had argued that XRP was not a security, but rather a utility token that was used to power the Ripple network.
In her ruling, Judge Torres found that the SEC had failed to meet its burden of proof. She said that the SEC had not shown that XRP was an investment contract, which is the legal definition of a security.
The ruling is a major setback for the SEC, which has been increasingly aggressive in its enforcement of securities laws against cryptocurrency companies. The ruling could also have implications for other cryptocurrency companies that are facing similar legal challenges.
The price of XRP surged following the ruling, rising as high as $0.84. However, the price has since pulled back to around $0.70.
It is still too early to say what the long-term implications of the ruling will be. However, it is clear that the ruling is a major victory for Ripple and its supporters.
What does this mean for the future of XRP?
The ruling that XRP is not a security is a major victory for Ripple and its supporters. It could pave the way for XRP to be listed on more exchanges and to be used more widely by businesses.
However, it is important to note that the ruling is not the final word on the matter. The SEC could appeal the ruling, and it is possible that the case could go to the Supreme Court.
Even if the ruling is upheld, it is not clear what the long-term implications will be for XRP. The cryptocurrency market is volatile, and the price of XRP could fluctuate significantly in the future.
Overall, the ruling is a positive development for XRP. However, it is too early to say what the long-term implications will be.
About The Author
