The judge overseeing the SEC’s lawsuit against Ripple has ruled that XRP cannot be considered an investment contract.
Crypto leaders including Gemini’s Cameron Winklevoss and Cardano’s Charles Hoskinson congratulated Ripple for its victory.
XRP has gained more than 55% following the highly anticipated summary judgment by Judge Analisa Torres.
The judgment paves the way for crypto assets like ADA, MATIC, and SOL to be identified as non-security tokens.
The judge overseeing the Securities and Exchange Commission’s lawsuit against Ripple handed a major victory to the latter earlier today after she ruled that XRP couldn’t be qualified as an investment contract. The summary judgment by New York Judge Analisa Torres cleared up the long-standing debate on whether XRP was a security. According to Judge Torres, none of XRP’s sales barring the institutional ones, can be considered securities.
Charles Hoskinson, Justin Sun & Cameron Winklevoss Celebrate Ripple’s Victory
The landmark judgment by federal judge Analisa Torres prompted the most high-profile stakeholders in the crypto industry to celebrate Ripple’s victory. Congratulations poured in from leading crypto personalities, including Gemini co-founder Cameron Winklevoss, Cardano founder Charles Hoskinson and Tron founder Justin Sun. The crypto leaders highlighted the positive implications of Judge Torres’ summary judgment in the closely watched lawsuit.
SDNY Judge Analisa Torres ruled earlier today that Ripple’s Programmatic Sales and other distributions of XRP did not constitute the offer and sale of investment contracts. However, the federal judge did point out that the institutional sales of XRP constituted the unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act. Hoskinson took to Twitter earlier today to acknowledge the impact of Ripple’s victory in crypto space and referred to it as a “giant leap for cryptocurrencies”. Tron founder Justin Sun also congratulated Ripple CEO Brad Garlinghouse and his team. Gemini co-founder Cameron Winklevoss was also among the joggers.
The summary judgment by Judge Torres also led to a 73% rally in XRP’s price. At the time of writing, XRP was trading at $0.80. The summary judgment also set a key legal precedent for the SEC’s ongoing lawsuits against Binance and Coinbase, which identified several tokens including ADA, SOL, and MATIC as securities. These tokens had a visible uptick in their prices following the summary judgment in SEC v Ripple.