Ripple-SEC case finally ends – XRP is NOT a security
Judge Analisa Torres ruled that XRP is only a security when sold to sophisticated institutional investors. This ruling was seen as a win for the crypto industry.
Ripple Labs has finally wrapped up its long legal battle with the SEC. The company was hit with a $125 million civil penalty for selling its XRP token to institutional investors without registering it as a security.
This fine is a small fraction of the nearly $2 billion that the SEC had originally sought. The SEC sued Ripple Labs back in 2020. They claimed that Ripple broke SEC rules by raising money through XRP sales without registration.
This case has been a big deal because it could change how the SEC regulates cryptocurrencies. Ripple, on the other hand, argued that they shouldn’t pay more than $10 million.
Ripple’s big win
After the ruling, XRP’s price shot up by 25%
The ruling came at a time when cryptocurrencies were losing value due to risk aversion in global markets. Judge Analisa Torres made a key decision in July 2023.
She ruled that XRP is only a security when sold to sophisticated institutional investors. This ruling was seen as a win for the crypto industry.
