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XRP Ripple Wins Lawsuit Against SEC 2024
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Written by
Yana Levkovich
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24 Jul 20232 min. read
Ripple wins the lawsuit against the SEC (Securities Exchange Commission) filed in December 2020 for purportedly selling unregistered securities.
During the legal battle, the SEC claimed that XRP is a security and not a commodity. Additionally, the Securities Exchange Commission asserted that Ripple illegally raised £1.8 billion by selling the XRP token.
The lawsuit turned out to be one of the major legal battles between a regulatory authority and a blockchain company.
After several years of court motion filings and hearings, it was challenging to determine which side had the upper hand in the lawsuit.
However, on 13th July 2023, Judge Analisa Torres provided the summary ruling, marking a pivotal moment for crypto sports betting enthusiasts and the entire cryptocurrency community.
FAQ
⭐ Is Ripple going to win the lawsuit against SEC?
✅ Yes. Southern District of New York Court verdict effectively dismissed the lawsuit initiated by the Securities Exchange Commission, acknowledging that Ripple’s XRP token does not fall under the security classification category.
⭐ Who is Analisa Torres?
Analisa Torres is a United States District Judge for the Southern District of New York.
⭐ What was Analisa Torres Crypto case ruling?
According to Judge Analisa Torres, the court is not responsible for determining whether the sales of XRP on the secondary market are considered offers and sales of investment contracts. In order to make this determination, a thorough examination of the particular scheme, transaction or contract is required.
⭐ When Ripple lawsuit end?
Ripple lawsuit against SEC ended on July 13th, 2023.
⭐ What will happen if Ripple wins lawsuit?
Some of the things that will happen or have already happened include:
- Ripple’s victory in the lawsuit has positively impacted the XRP token’s value.
- Concerns arise that the non-security classification may lead to potential “pumping and dumping” activities by Ripple and its creators.
- Some professionals in the blockchain community have identified loopholes in the verdict that could have future negative implications for participants in the crypto ecosystem.
What Was the Ruling?
✔️ The 13th July 2023 verdict effectively dismissed the lawsuit that the Securities Exchange Commission initiated, recognising that Ripple’s XRP token doesn’t fall under the category of security classification.
✔️ The Southern District of New York Court stated that it didn’t address the concern of whether XRP’s secondary market sales qualify as investment contracts’ offers and sales.
✔️ Judge Analisa Torres ruled that this concern wasn’t within the court’s scope. That means determining whether secondary market sales can be categorised as investment contracts’ sales or offers would need an all-inclusive evaluation of the specific scheme, transaction, or contract.
The Securities Exchange Commission’s case aimed to compel the blockchain company, Ripple, to stop its XRP token offering, claiming that it qualified as a security, necessitating additional regulatory measures.
This positive outcome for the cryptocurrency company Ripple underscores the firm’s contention that the XRP token doesn’t possess any characteristics associated with securities.
The Southern District of New York Court’s ruling represents a massive development concerning the future of the XRP token and the whole crypto industry.
It’s worth keeping in mind that Judge Analisa Torres’s ruling comes as the Securities Exchange Commission is embroiled in other cases against the leading cryptocurrency exchanges Coinbase and Binance for listing unregistered/unrecognised securities.
What Impact Does Judge Analisa Torres’s Judgement has on the XRP Token’s Value?
The blockchain company’s victory in the Securities and Exchange Commission case has already affected the XRP token’s value. However, it has also attracted criticism from the cryptocurrency community.
Professionals in the crypto industry speculate that the status of Ripple as a non-security provides the XRP token and its creators an unopposed pass to dump their holdings, adding to the selling pressure across crypto exchanges.
Previous occasions of cryptocurrency developers and founders “pumping and dumping” tokens have led to enormous losses for the crypto market participants. The status of the XRP token as a non-security is more likely to encourage such projects, negatively impacting participants in the market.
The cryptocurrency market players rejoiced following the 13th July 2023 verdict by Judge Analisa Torres, pushing the XRP token up 74% at times.
But a couple of professionals in the blockchain community have already taken the contrarian stance. They have examined the verdict on the XRP token and discovered some loopholes that could affect participants in the ecosystem negatively in the future, given that Ripple wins lawsuit against the SEC.
Crypto Analyst
