A federal judge has ruled that the Ripple Labs token (XRP) is not a security when sold to the general public but ONLY when sold to institutional investors. The ruling marks a partial win for the SEC and a clear win for Ripple holders.
New York District Judge Analisa Torres ruled that Ripple’s XRP is not a security and that the SEC’s motion that it is, is denied in part.
Institutional sales of XRP could be classed as securities.
The rule is considered a landmark decision that could have massive implications for the industry. Experts believe that Ripple's win has set the stage for other assets and cryptocurrencies labeled as securities by the SEC to defend themselves and recover.
Ripple price exploded on the news, shooting up 30% from a low of 0.46926 to a high of 0.64888 as investors reacted to the news. The altcoin hit a peak of $0.94 on Binance as market participants reacted to the news.
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