Judge Rules on SEC vs Ripple Labs Lawsuit
Judge Analisa Torres of the United States District Court for the Southern District of New York delivered her decision on the SEC vs Ripple Labs lawsuit. The ruling has implications for Ripple’s sale of XRP and the distribution of the token.
Main Breakdowns:
- The court ruled that Ripple’s sales of XRP to the general public and the distribution of the token do not qualify as offering investment contracts.
- A jury must decide whether other sales were unregistered sales of securities.
- Ripple’s institutional sales were deemed securities as a matter of law.
- Ripple’s sale of XRP violated securities regulations by offering and selling investment contracts without proper registration.
- The case will proceed to trial to determine the trial date and pre-trial deadlines.
Hot Take:
Judge Torres’ ruling brings relief to Ripple as their institutional sales were categorized as securities. However, the status of other sales remains unresolved and will be determined by the upcoming trial. This ruling has significant implications for the future of Ripple and the broader cryptocurrency industry.
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