The Ripple XRP vs SEC case was a landmark case that has implications for the future of cryptocurrency. The judgment is mixed for both Ripple Labs and the SEC, and it remains to be seen how the judgment will be interpreted in future cases. The overall outcome of the Ripple vs. SEC court battle is a big win for Ripple XRP.
The outcome of the XRP vs SEC will impact the crypto industry as well as crypto investors around the world. In this blog post, we are going to discuss the SEC vs Ripple case, the significance of the Ripple XRP court decision, and the latest updates on the Ripple vs SEC legal battle.
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What is the Ripple vs SEC case?
Before going about the case let’s have an Understanding of the SEC’s allegations against Ripple XRP.
In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Inc. and two of its executives, for securities laws by selling XRP as an unregistered security.
SEC’s Claims
The SEC’s claims against Ripple are based on the following allegations:
- Ripple offered and sold XRP to investors as an investment contract.
- XRP is a security because it is a fungible, divisible, and unregistered asset.
- Ripple violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by failing to register XRP as a security and by making false and misleading statements to investors.
Ripple’s Defense
Ripple denies the SEC’s allegations and has filed a motion to dismiss the lawsuit. Ripple argues that XRP is not a security because it is a currency and not an investment contract.
Related – Buy Bitcoin From CoinDCX and Invest in the Future of Money.
Latest updates on Ripple vs SEC legal battle: XRP Wins.
Ripple SEC case updates – SEC filed a lawsuit against XPP before Bull Run and finally, the decision comes in favour of Ripple. It’s great positive news for XRP and the whole crypto Industry.
The price of XRP went from 0.4720 to 0.9380 on the Binance XRPUSDT pair. Price pumped almost 100% and It touched around $1 after the judgement. XRP also claimed 4th position in the crypto market cap after the court judgement. Bitcoin is at the top, and Ethereum and Tether (stablecoin) are at second and third positions respectively.
Explaining the significance of the Ripple XRP court decision:
After investigation & court hearing. The important outcomes from the Ripple vs. SEC court battle are:
1. XRP is not a security said the court in the judgement.
The allegation made by the SEC was that the XRP sale is security as Ripple founders sold XRP to institutions and Partner banks. The Founders also sold XPP on their platform through Orderbook.
“Ripples Institutional sale of XRP is unregistered offer & sale of investment is a violation of securities Act.”
2. The win & positive impact is this
XRP is traded on crypto exchanges too and neither Ripple knows who is buying from Oderbook and neither the buyers from the exchanges know that Ripple is selling the XRP or any other users. So this is a violation.
“Ripple programmatic sale of XRP did not constitute the offer Sale of much of contacts.”
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The outcome from the SEC and Ripple Case from the crypto industry.
The Ripple vs. SEC court battle was a long and complicated legal battle, but the final judgment has finally been handed down. So now the question is what is the outcome from the SEC and Ripple Case from the crypto industry?
– If any Altcoin is trading on a spot order book on an exchange, it does not come under securities.
– If any platform goes for Launchpad or IO or institution sale then it will come under the securities.
– Bounties and airdrops will not come under securities.
What does the Ripple XRP lawsuit mean for crypto investors?
The SEC vs Ripple case was a landmark case that has implications for the future of cryptocurrency. The judgment is a mixed bag for the cryptocurrency industry. On the one hand, the judgment shows that the SEC is willing to take action against companies that sell cryptocurrencies as unregistered securities. On the other hand, the judgment also shows that the SEC may have difficulty proving scienter in cases involving cryptocurrency sales.
Now exchanges started listing XRP on their exchanges. This led to the XRP price going from 0.4720 to 0.9380 on the Binance XRPUSDT pair.
Conbase already listed XRP after the judgement. Other exchanges will also follow Coinbase and they will list XRP soon. It will be helpful for other ongoing cases for Coinbase, Binance and Gemani.
