Ripple Labs, the blockchain technology company, achieved a significant legal victory in the United States District Court in the Southern District of New York on July 13.
Judge Analisa Torres ruled in favor of Ripple Labs in a case initiated by the Securities and Exchange Commission (SEC) in 2020.
This groundbreaking decision declared that the XRP token, offered by Ripple, is not a security, granting Ripple the upper hand in the legal battle.
In an important development, Judge Torres granted summary judgment in favor of Ripple Labs, affirming that the XRP token does not fall under the classification of a security.
The SEC lawsuit aimed to compel Ripple to cease offering XRP, claiming that it constituted a security and required additional regulatory measures.
However, Judge Torres’ ruling on July 13 refuted this notion and sided with Ripple Labs.
Upon the release of this favorable verdict, the price of XRP experienced a significant surge. Within minutes of the news breaking, the value of XRP catapulted from $0.45 to $0.61, reflecting a remarkable increase of over 25%.
This price movement demonstrates the market’s positive response to the court’s decision and the newfound clarity regarding XRP’s status.
The SEC’s lawsuit against Ripple and its top executives, Brad Garlinghouse and Chris Larsen, dates back to December 2020.
The SEC alleged that Ripple was offering an unregistered security, leading to legal action against the company.
Throughout the prolonged legal battle, various elements added to the intrigue, including the release of the controversial “Hinman Documents” and the persistent defiance displayed by Brad Garlinghouse in the face of the SEC’s accusations.