Breaking News: Ripple Scores Partial Victory in SEC Lawsuit, XRP Price Soars

Breaking News: Ripple Scores Partial Victory in SEC Lawsuit, XRP Price Soars
Photo by Kanchanara / Unsplash

A U.S. District Court judge in New York has ruled that Ripple's sale of XRP tokens on exchanges and through algorithms did not constitute investment contracts, but that the institutional sale of the tokens did violate federal securities laws.

The ruling is a partial victory for Ripple, which has been fighting a long-running legal battle with the SEC over the status of XRP. The SEC has accused Ripple of selling XRP as an unregistered security, but the company has argued that XRP is a utility token and not a security.

The judge's ruling means that Ripple will not face charges for its sale of XRP on exchanges and through algorithms. However, the company will still face trial on the SEC's claims that its institutional sales of XRP violated securities laws.

The news of the ruling sent the price of XRP soaring, with the token up as much as 25% in the immediate aftermath of the announcement. XRP is currently trading at around $0.61, up from around $0.45 before the ruling.

a businessman is trading cryptocurrency on Binance
Photo by Kanchanara / Unsplash

The ruling is a major development in the SEC's case against Ripple, and it could have implications for the future of cryptocurrency regulation in the United States. If the SEC is successful in proving that Ripple's institutional sales of XRP violated securities laws, it could set a precedent that could make it more difficult for other cryptocurrency companies to launch their own tokens.

However, the ruling is also a victory for Ripple, and it could help to legitimise the company's business model. If the SEC is unable to prove that XRP is a security, it could pave the way for Ripple to continue to sell XRP without facing regulatory hurdles.

The case is still ongoing, and it is possible that the SEC could appeal the judge's ruling. However, for now, the ruling is a major win for Ripple and a setback for the SEC.

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