Ripple Labs’ native token, XRP, experienced a remarkable surge of up to 28% following a recent ruling in an ongoing lawsuit.
The Securities and Exchange Commission (SEC) and Ripple each had motions granted and denied in part by the judge.
As a result, the case will proceed to trial, where the issues previously denied summary judgment will be further examined.
This development comes after Ripple’s legal battle with the SEC began in 2020, and it marks a significant turning point in the proceedings.
The judge’s ruling stated that Ripple’s Institutional Sales of XRP constituted an unregistered offer and sale of investment contracts, violating Section 5 of the Securities Act.
However, the same ruling concluded that Ripple’s Programmatic Sales of XRP did not fall under the category of investment contracts. These findings reflect a mixed outcome for Ripple, as some allegations were upheld while others were dismissed.
CoinMarketCap reported a substantial increase in the value of XRP, Ripple Lab’s native token, following the court’s ruling.
The token experienced a surge of up to 28% on Thursday, indicating the market’s positive response to the ongoing legal developments. This surge showcases the impact that regulatory decisions can have on cryptocurrency prices and investor sentiment.
Legal Battle Since 2020: The legal confrontation between Ripple Labs and the SEC has been ongoing for several years, with tensions initially arising in 2020.
Ripple has been defending itself against allegations of offering an unregistered security, leading to the SEC’s legal action.
The recent ruling sets the stage for a potentially transformative trial that could shape the future of Ripple and the regulatory landscape surrounding digital assets.