In a significant development, the judge presiding over Ripple’s case declared that XRP does not fall under the definition of a security. According to the judge, the sales of XRP by Ripple do not amount to offering an investment contract.
A Victory for Ripple
The case, which has been closely watched by investors and crypto enthusiasts alike, resulted in a win for Ripple. The judge’s ruling stated that XRP does not fulfill the criteria of being a security. This decision also extended to institutional sales of XRP by Ripple, which were likewise deemed to not be securities.
Upcoming Court Proceedings
While this ruling brings considerable relief to Ripple and XRP enthusiasts, there is still more to come. The court will soon release a separate announcement that will detail the date of the next hearing and the schedules for any associated preliminary hearings.
Further Clarifications by Judge Torres
Providing additional context to the verdict, Judge Torres expressed that Ripple’s Programmatic Sales and other distribution channels, along with the XRP sales conducted by Larsen and Garlinghouse, do not form investment contracts. This interpretation essentially excludes these transactions from being classified as securities.
Implications for Cryptocurrency Sales
In a broader context, the judge’s declaration has implications for the wider cryptocurrency market. In the ruling, Judge Torres indicated that digital tokens sold to the general public may not necessarily be categorized as securities. This could pave the way for more freedom in the sale and trade of cryptocurrencies, potentially revolutionizing the crypto market.
Credit: Source link
