The landmark case between Ripple Labs and the SEC has come to an end. Ripple has won the case against the SEC, proving that selling XRP tokens on exchanges did not violate federal laws.
Starting back in 2020, the SEC’s case questioned XRP’s constitution as a crypto. The US Securities and Exchange Commission claimed that XRP was a security. However, Ripple Labs has proven the claims wrong after a 2-year-long legal battle.
After the news, XRP witnessed a 75% hike in its market value. Currently, the token is trading at 0.768 dollars, marking a 63% surge in the past 24 hours. As expected, traders have been going through every XRP forecast to analyze how the ruling will affect Ripple’s price.
As for the ruling, Judge Analisa Torres has created history since it is the first instance where a crypto company has won against the SEC. However, it was not a complete loss for the SEC either.
The court found that selling XRP on public exchanges was not illegal. However, the ruling also stated that selling Ripple directly to sophisticated investors did break federal securities law.
Even though the ruling was made based on the case specifically, it will likely offer security to other crypto firms against the SEC. Brad Garlinghouse, the Chief Executive at Ripple, talked about the development.
Brad celebrated the ruling, stating that it was a massive win for Ripple. The Ripple Chief Executive also called it a win for the crypto industry in the US.
As soon as the ruling was announced, Coinbase informed users that it would start XRP trading services shortly. As the biggest crypto exchange in the US, the news carried massive prominence among crypto traders.
On the other hand, the SEC has also expressed delight about the ruling. A spokesperson from the SEC talked about Ripple’s selling crypto to investors being considered a violation. According to the spokesperson, the ruling was pleasing.