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In a landmark ruling, a U.S. judge has determined that Ripple's sales of the XRP token (CRYPTO: XRP) do not constitute an offer of investment contracts.
The saga of Ripple Labs, the XRP token, and whether the sale of its crypto token constituted a securities law violation in the U.S. advanced today. In a ruling from the U.S. District Court of the Southern District of New York, Judge Analisa Torres gave a nuanced view on the matter. In summary, after examining several different sales methods of the XRP token over time, and applying the Howey Test to each, the district judge approved the SEC’s motion for summary judgment with regard to the institutional sale by Ripple of the XRP token.
SDNY federal court rules Ripple's XRP token can be treated as a security in institutional sales, following SEC 2020 lawsuit against the firm.
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A judge in the SEC's case against Ripple has ruled the sales of XRP to institutional customers were unregistered securities offerings, even though the token itself may not meet the test for a security.
Crypto markets are soaring after a U.S. court ruled that Ripple’s XRP is not a security. “XRP, as a digital token, is not in and of itself a ‘contract,…