Ripple Labs has achieved a significant legal victory in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
A federal judge ruled that Ripple’s XRP token is not considered a security, a decision that could have far-reaching implications for the cryptocurrency industry.
The SEC had alleged that Ripple conducted an unregistered securities offering by selling XRP. However, the court found that XRP does not meet the criteria of an investment contract under existing securities laws.
This ruling provides much-needed clarity for Ripple and other cryptocurrency projects facing similar legal challenges.
Following the announcement, the price of XRP surged by over 50%, reflecting renewed investor confidence. Ripple’s CEO, Brad Garlinghouse, expressed optimism about the future, stating that the company is now well-positioned to expand its operations and partnerships globally.
