In what might have been the most anticipated court decision by the crypto world, Judge Torres has ruled that XRP is not a security. The price of XRP shot up immediately after the ruling was delivered. Currently, the asset is trading at $0.598, a 27% increase.
The lawsuit against Ripple had gone on for years. The U.S. Securities and Exchange Commission accused Ripple CEO and founder Brad Garlinghouse of selling XRP coins in a security fashion but not obeying securities regulations.
The SEC took the matter to court and took it upon themselves to prove that XRP was a security. The lawsuit continued for over 2 years, but the US court has partially denied the SEC’s motion against the crypto asset.
This landmark decision could change how governments, banking institutions, and even multinational conglomerates approach cryptocurrencies.
Although XRP was not a security, the judge also ruled that the institutional sales of the XRP cryptocurrency occurred in the fashion of security.
U.S Court rule XRP is not a security
According to the verdict, the SEC accused Ripple of selling $728.9 million worth of XRP over 7 years (from 2013 to 2020) to institutions such as hedge funds and ODL customers. Furthermore, the SEC alleges that Ripple also sold $757.6 million worth of XRP to individual investors through crypto exchanges during the same period. Pursuant to these sales, and on the grounds that XRP was sold as a security, SEC went ahead to file for a lawsuit on December 22, 2020.
Price of XRP bursted 30% in one long green candle as many investors rush in to buy, expecting a more significant move in the days to come.
The XRP case verdict was greatly awaited, as many expected it to happen this year for a number of reasons. The majority of XRP supporters expected it to happen as early as March; however, due to the arduous process of the justice department, the verdict came out later.