21 April, 2024



Brad Garlinghouse Hails Ripple’s Major Legal Victory as XRP Wins in Court

20 Jul, 2023

26 Oct, 2023

Ripple, the San Francisco-based blockchain company, recently celebrated a landmark victory in the United States. The court’s decision on July 13th declared that Ripple’s cryptocurrency, XRP, is not a security, marking a significant ruling for the entire U.S. crypto industry. This was the first industry win against the Securities and Exchange Commission (SEC), setting a precedent for other crypto assets, tokens, and securities regulations in the United States.

Ripple CEO Brad Garlinghouse expressed his gratitude and pride for his team in a tweet:

The case was primarily about whether XRP, a crypto token, could be an investment contract and, therefore, a security under the law. The court unequivocally stated that XRP, as a digital token, is not in and of itself a security. This ruling refuted the SEC’s theory that crypto tokens standing alone are securities.

Ripple Chief Legal Officer Stu Alderoty commented on the ruling’s implications, stating:

The Court’s decision marks a historic occasion not only for the company, but also for the crypto market at large. This decision will have profound consequences on how digital tokens are classified in the U.S. moving forward.

The court also found that Ripple’s XRP sales on exchanges, XRP sales by Ripple executives, and Ripple’s XRP distributions to developers, charities, and employees were not securities. Despite the victory, Ripple’s pursuit of sound crypto regulation in the U.S. is far from over. The company continues to invest in jurisdictions that have embraced clear regulatory frameworks. In June, the Monetary Authority of Singapore granted Ripple an In-Principle Approval (IPA) for a Major Payments Institution License.

Following the ruling, U.S. exchanges that had previously delisted XRP due to uncertainty around its security status have either re-listed XRP or announced plans to do so. Furthermore, XRP’s value surged, defying the broader crypto market trend. At press time, XRP was up 5%, trading at $0.834, following further developments in the ongoing case between the SEC and Ripple. The cryptocurrency is up almost 76.6% on the weekly chart following the landmark court ruling.

Meanwhile, the Ripple community expects big announcements in the near future. According to one user, the court ruling was just the beginning of a series of announcements to come. With XRP now officially not a security, it is expected to be added to Ripple’s Liquidity Hub. This development could potentially enhance the liquidity of XRP and further strengthen its position in the market. The community also anticipates more strategic partnerships and expansions in the months ahead.

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