In a long-awaited conclusion to a years-long legal battle, a US judge has officially declared that Ripple’s XRP is not a security. The judgment was declared by New York District Judge Analisa Torres which brings an end to a long-dated argument about the classification of Ripple.
XRP, also known as Ripple, is a cryptocurrency that operates on a decentralized digital platform. It was created to facilitate fast and low-cost international money transfers and other financial transactions.
Unlike traditional cryptocurrencies like Bitcoin, XRP is not mined, but instead, issued by its parent company, Ripple Labs. It aims to provide a secure and efficient way to send and receive money globally, with its technology designed to enable fast settlement and liquidity for financial institutions.
The SEC and Ripple Labs have been engaged in a legal battle over the classification of XRP. In December 2020, the SEC filed a lawsuit alleging that Ripple conducted an unregistered securities offering. Ripple denied the allegations, stating that XRP is a digital currency, similar to Bitcoin and Ether.
In February 2021, the court granted Ripple’s motion to compel the SEC to produce internal documents related to Bitcoin and Ether. In March 2021, the court dismissed the lawsuit against Ripple’s CEO and co-founder, narrowing the focus to the classification of XRP.
The SEC requested access to Ripple’s internal communications in April, while Ripple filed a motion to dismiss the lawsuit in May, citing harm to investors due to regulatory uncertainty. In June, the court denied Ripple’s motion to dismiss and the SEC’s request for access to Ripple’s legal advice. Today, the court ruled that XRP is not a security.
SEC and LBRY
Before today’s ruling, the case between the SEC and LBRY, which is similar to SEC vs Ripple, was inconclusive. Judge Barbadoro, who presided over the case, refused to clarify whether the LBC token is a security. This decision differs from the judge’s previous ruling in January.
The outcome of the SEC vs LBRY case was a disappointment for the crypto community, especially XRP holders. However, after the ruling of XRP, the value of the token increased by more than 30% in less than an hour.