One giant leap for the crypto industry after Ripple recorded a huge win in the court case between them and the Securities and Exchange Commission. But it came as a surprise, no doubt!
Many crypto enthusiasts believe that court cases between crypto companies and the SEC are typically unfavorable for the crypto company, as the SEC tends to win most of the time. So this definitely was a surprise.
The XRP court case has been dragging on for many months, and finally, good news has come out of it. Specifically for the crypto industry. XRP has finally been vindicated, with the judge declaring it non-security.
Of course, the celebrations were heralded by XRP pumping up to 67%. Many would say the cryptocurrency deserved the pump after the court case hindered several opportunities for a bullish market.
Analisa Torres, the US District Judge, was the one who made the pronouncement that XRP wasn't security as the SEC was accusing them of being.
"The crypto company did not violate federal securities law by selling its XRP token on public exchanges."
Ripple Couldn't Hide Its Excitement for the Ruling
After the judge issued the ruling on the securities status of XRP, the crypto industry burst with joy from various angles. Many crypto projects, including Binance, joined together to celebrate their triumph over the SEC. This reaction was understandable given the circumstances. But the most pleasure would perhaps go to the Ripple development and leadership team, who have suffered much within the past months of court cases. Brad Garlinghouse, CEO of Ripple, couldn't hide his excitement after the ruling regarding the Securities status of XRP.
He immediately started a new side quest of sharing tweets explaining what the recent ruling could mean for the crypto industry. The Ripple SEC win is significant in the court battle, although it is not the end of the court case. But no doubt, even the SEC knows they have been given a huge blow with the new ruling. The judge declaring that XRP isn't a security reduces the compounding effect of the court case.
"We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come," Brad Garlinghouse, CEO of Ripple, immediately shared on Twitter.
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
What Does the Ruling Mean for XRP?
Ripple is undeniably a loved crypto project which has so many reasons to be loved by investors. The current win over a long-time battle would most likely usher in a new phase for Ripple and XRP.
There's a huge significance in the new ruling regarding the Ripple SEC win. Ripple's Chief Legal Officer, Stuart Alderoty, immediately explained what the win at the court would mean for the cryptocurrency.
"A huge win today – as a matter of law - XRP is not a security. Also a matter of law - sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, to charities, to employees are not securities. The only thing the Court found constitutes an investment contract is past direct XRP sales to institutional clients. There will be further court proceedings only on these institutional sales per the Court’s order," Alderoty said while speaking on the new development on Twitter.