NEW DELHI (CoinChapter.com) — In a stunning victory for Ripple Labs, the United States district court in the southern New York district delivered a resounding judgment today, ruling in favor of the company in a closely watched case initiated by the U.S. Securities and Exchange Commission (SEC) in 2020.
Judge Analisa Torres, presiding over the case, made a groundbreaking decision by granting summary judgment in favor of Ripple Labs. According to the court documents filed earlier today, the ruling definitively stated that the Ripple (XRP) token does not qualify as a security.
The SEC lawsuit aimed to force Ripple Labs to halt the offering of its XRP token, alleging that XRP was indeed a security subject to additional regulatory oversight. However, the judge’s ruling delivers a major blow to the SEC’s argument, establishing that XRP does not fall within the category of securities.
Per documents viewed by Coinchapter:
As per the court document, “Defendants’ motion for summary judgment is GRANTED as to the Programmatic Sales, the Other Distributions, and Larsen’s and Garlinghouse’s sales, and DENIED as to the Institutional Sales.”
This long-awaited decision represents a significant milestone for Ripple Labs and its CEO, Brad Garlinghouse. Garlinghouse, who had expressed his confidence in the case’s outcome, emphasized that while this victory is a major step forward, the battle for the broader cryptocurrency industry is far from over.
The ruling has wide-ranging implications for the crypto landscape, as it could potentially set a precedent for how other digital assets are classified and regulated by authorities in the United States.
Market observers anticipate that this development may have ripple effects across the industry, sparking discussions on the regulatory treatment of cryptocurrencies and shaping future legal battles.
Ripple Labs and its legal team have hailed the judgment as a vindication of their steadfast belief that XRP should not be deemed a security, pointing to the token’s utility and decentralized nature. The company intends to capitalize on this legal triumph to further propel the adoption and growth of its blockchain-based solutions, particularly in cross-border transactions.
As news of this landmark ruling spreads throughout the crypto community, industry players closely monitor the potential impact on the market and eagerly await further developments in the ongoing fight for clarity and regulatory certainty in digital currencies.
