Ripple Labs scored a major victory on July 13, when Judge Torres ruled that XRP is not an unregistered security, except when used to raise funds from institutions. This is a major win for the cryptocurrency industry as a whole.
Since the SEC claimed that Ripple Labs and its co-founders raised $1.3 billion in an unauthorized XRP sale in December 2020, the firm has been engaged in a legal dispute with the regulator.
In a decision that was both a gain and a loss for Ripple Labs, Judge Torres determined that programmatic sales to the general public and XRP dividends to employees did not qualify as unregistered securities sales despite total institutional sales of $728 million.
Judge Torres looked at the case through the lens of the Howey test, which is a test that determines whether an investment is a security.
The court found that XRP met the first two prongs of the Howey test, but not the third.
In the wake of the SEC’s partial defeat in the Ripple Labs case, XRP has been relisted on several cryptocurrency exchanges.
XRP trading will begin on Coinbase in phases as soon as there is a sufficient supply of the asset, according to the company. In some countries, there may be limitations on XRP support.
Kraken and Gemini are both exploring the possibility of listing XRP on their trading platforms, following the SEC’s ruling that XRP is not a security.
XRP is back on Bitstamp USA, and U.S. customers can once again trade the cryptocurrency.
The decision that XRP is not a security has made it possible for the cryptocurrency to be relisted on additional cryptocurrency trading platforms, and many others are already doing so or are thinking about doing so.
The price of XRP skyrocketed after the ruling, reaching a high of $0.87.
