Ripple, the company behind the XRP cryptocurrency, achieved a partial victory in its ongoing legal battle with the U.S.
Securities and Exchange Commission (SEC). A federal judge ruled that XRP is not a security when sold on secondary markets, such as cryptocurrency exchanges.
This ruling is significant for Ripple and the broader crypto market, as it sets a precedent that certain digital assets may not fall under traditional securities laws when traded by retail investors.
However, the court also ruled that Ripple’s direct institutional sales of XRP could still violate securities regulations. The mixed ruling provides some relief for XRP holders, as it allows trading to continue on major exchanges, but it leaves some regulatory questions unanswered for Ripple and other crypto projects facing SEC scrutiny.
