The token reacted to the key ruling in the multi-year trial with a 70% rise in value.
At the regular session of the court, which considered the proceedings between the US Securities Commission (SEC) and the blockchain company Ripple Labs, the judge issued a verdict that neither sales nor other forms of token distribution, as well as sales of XRP tokens to private investors are not equated to transactions with investment contracts, i.e. tokens are not recognized as securities.
This means that ownership of tokens, their placement on exchanges, payment in tokens and other retail transactions are not equated to such transactions. At the same time, the court recognizes the sale of tokens to institutional investors under a preliminary agreement as a transaction with an investment contract. The judge’s decision is not final, the case will continue to be considered in court, and the SEC may appeal.
The main US exchange regulator has been suing Ripple for several years. On December 22, 2020, the agency accused the company of selling $1.3 billion worth of unregistered securities under the guise of XRP tokens. Over the years, the SEC’s case against Ripple has become one of the most important proceedings in the crypto industry, and its final result could have serious consequences for the rules of digital asset circulation in the United States.
The XRP token reacted with an instant price increase of 70%, followed by other, including the largest, crypto-assets. Bitcoin (BTC) reached $31,400 thousand, Ethereum (ETH) exceeded $1900, Solana reached 26$.