XRP Soars on US Court Ruling That Gives Ripple Landmark Win in SEC Case

Updated: 13 July 2023

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XRP surged after a US court ruled that Ripple Labs Inc.’s token is not a security when sold to the public, giving the company and the crypto industry a landmark partial win in a case brought by the US Securities and Exchange Commission.

While the judge also ruled that XRP is a security when sold to institutional investors, that didn’t stop the token that fuels Ripple’s payments system from soaring more than 73% as of 16:25 EST after news of the development buoyed crypto markets.

“The Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract,” tweeted House Majority Whip Tom Emmer. “Now, let’s make it law.”

The Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of. Now, let’s make it law. 👇 pic.twitter.com/FZtO1BzfWX

— Tom Emmer (@GOPMajorityWhip) July 13, 2023

XRP Case Far From Closed

The ruling by US District Judge Analisa Torres in New York is a potential breakthrough for the crypto ecosystem as it faces a barrage of regulatory moves against it in the US. Still, Torres made a summary ruling with the case now set to go to trial, and potentially appeals, indicating the the case is far from closed.

That did little to damp the spirits of Ripple CEO Brad Garlinghouse, who tweeted that the ruling’s key finding was that XRP, as a digital token, is not in and of itself “a contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.

“Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US,’’ tweeted Garlinghouse. “Lets start planning that proper party.’’

We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.

— Brad Garlinghouse (@bgarlinghouse) July 13, 2023

Venture capitalist Adam Cochran, founder of Cinneamhain Ventures, tweeted that the ruling was a ‘’surprisingly big win for XRP’’ and ‘’very good for all alts.“

1/5

Ripple case, here is the good and the bad.

But it is mostly *VERY* good for all alts, and a surprisingly big win for XRP.

First Judge did decide institutional sales/fundraising was securities. pic.twitter.com/esmjcIrzN0

— Adam Cochran (adamscochran.eth) (@adamscochran) July 13, 2023