Judge Analisa Torres has granted Ripple a massive partial victory over the Securities and Exchange Commission (SEC).
In my opinion, this is the entire substance of a ‘full’ victory, though it must be stressed that the lawsuit is not fully resolved yet.
Judge Torres recently ruled that XRP is not a security, in and of itself, and all secondary sales of XRP cannot be considered to be securities—they’re tokens. …However, initial sales of XRP to hedge funds and institutional clients represent unregistered securities sales.
It should be noted that the reason the sales to these institutional clients represent unregistered securities sales has nothing to do with the intrinsic properties of XRP, but, rather, the manner in which the sales were conducted.
This will set an enormous precedent for cryptocurrencies and digital assets in general. It also bears mentioning that XRP is now the only token with regulatory clarity.
The case will now move to trial on some of the SEC’s claims—though not the most pressing ones.
Crypto investors, speculators, and the XRP army celebrated on Twitter & Instagram the groundbreaking win.
Reuters confirmed:
U.S. District Judge Analisa Torres, who is based in New York, on Thursday said the company’s $728.9 million of XRP sales to hedge funds and other sophisticated buyers amounted to unregistered sales of securities.
But Torres ruled Ripple’s XRP sales on public cryptocurrency exchanges were not offers of securities under the law, because purchasers did not have a reasonable expectation of profit tied to Ripple’s efforts.
Earn Your Leisure reports that “XRP’s price surged 16% following a favorable ruling for Ripple in its ongoing lawsuit with the Securities and Exchange Commission (SEC).”
As of the time of this writing the price has surged by roughly 70%.
XRP TO THE MOON BABY!!!
