Ripple Wins Legal Battle Against SEC, XRP Price Surges 37%
Summary: The verdict between Ripple and the SEC marks a significant moment in the ongoing legal dispute. Judge Torres acknowledged that Ripple's Programmatic Sales and sales by Chris Larsen and Brad Garlinghouse were not investment contracts, freeing a significant portion of the company from SEC scrutiny. This decision sparked investor interest and led to a 37% increase in XRP price.
The verdict represents a watershed moment in the ongoing legal dispute between Ripple and the SEC. Indeed, the XRP price shot up by 37 percent after this historic judgment.
Judge Torres decided with Ripple after carefully considering the economic reality and circumstances. She acknowledged that neither the Programmatic Sales nor the sales by Chris Larsen and Brad Garlinghouse of Ripple constituted investment contracts. This decision essentially freed a large part of Ripple’s business from the SEC’s scrutiny.
XRP Price Surges
Even after this decisive victory, Ripple is still deeply entangled with the SEC. The court has ruled that Programmatic Sales and similar distributions cannot be classified as investments. Ripple’s Institutional Sales of XRP, which brought in $728.9 million, were deemed illegal because they violated Section 5 of the Securities Act by offering and selling the cryptocurrency without first registering the transaction.
This is a watershed moment for the crypto sector as a whole. The crypto market has shown remarkable endurance as Ripple has fought the SEC to defend the legitimacy of its XRP sales. Even more significantly, it sparked investor interest, leading to a 37% rise in the price of XRP, from $0.47 to $0.62.
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