Ripple, Crypto Industry Score Partial Win in SEC Court Fight Over XRP
Institutional sales of the tokens violated federal securities laws, but programmatic sales did not, a court ruled.
Ripple scored a partial victory in its fight with the U.S. Securities and Exchange Commission in a court ruling that brought a modicum of regulatory clarity for the cryptocurrency industry.
The sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts, the U.S. District Court of the Southern District of New York ruled Thursday. But the institutional sale of the tokens did violate federal securities laws, the court said.
XRP rallied on the news, and crypto exchange Gemini said it might now list the token, but early reads from legal experts suggest the ruling falls short of settling the question of whether and under what circumstances a digital asset meets the definition of a security under U.S. law.
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