On 13 July 2023, XRP became a runaway train after a landmark ruling by a U.S. district judge.
Earlier today, Hon. Analisa Torres, a district judge at the United States District Court for the Southern District of New York, ruled in the SEC vs Ripple Labs lawsuit initiated in December 2020.
Here is what Judge Torres said about the XRP token:
“XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.“
With regard to secondary market sales of XRP, Judge Torres said:
“In any event, the SEC does not develop the argument that these secondary market sales were offers or sales of investment contracts, particularly where the payment of money for these XRP sales never traced back to Ripple, and the Court cannot make such a finding.“
As you can see from the price chart from TradingView shown below, moments after the ruling came out, the XRP price started rallying, and by 3:45 p.m. UTC, it had $0.64386.
Below are a few reactions from the crypto community.
Veteran crypto investor Adam Cochran had this to say:
Gemini Co-Founder Cameron Winklevoss said:
Jake Chervinsky, Chief Policy Officer at Blockchain Association, considered the ruling a win for crypto exchanges:
The following excellent analysis of the judge’s comments regarding secondary market sales of XRP tokens came from American attorney Jeremy Hogan:
Another excellent take on this topic came from American lawyer Jesse Hynes, Founder of Seedstarter, who said:
Hynes went on to comment on the SEC’s response to Judge Torres’ order:
Ethereum and Cardano Co-Founder Charles Hoskinson called XRP’s huge win a “giant leap” for altcoins: