On July 13th, WatcherGuru reported that the Southern District of New York court in the United States ruled in favor of Ripple in the lawsuit against the SEC that has been ongoing since 2020.
Judge Torres ruled that Ripple’s XRP token is not a security and the buying and selling of XRP through exchanges cannot be considered as an investment contract.
“XRP, as a digital token, is not a ‘contract, transaction, or scheme’ that satisfies the Howey test for an investment contract,” Judge Torres concluded in the ruling of the Southern District of New York Court.
This news marks the end of the three-year-long battle between Ripple and the Securities and Exchange Commission (SEC), the agency that initiated the lawsuit against the company in 2020 for allegedly violating U.S. securities laws by selling XRP without prior registration with the agency.
Immediately after the ruling, XRP surged by nearly 30% to $0.61. The overall market also experienced a bullish trend, with altcoins seeing significant gains.
This is the ruling that the cryptocurrency community and Ripple supporters have been eagerly awaiting. While it is a favorable ruling for Ripple, we still have to wait for the final decision to see if the SEC accepts this ruling. In the event that Gary Gensler does not agree with the court’s ruling, the U.S. regulatory agency may file an appeal.