Ripple XRP Sold to Public Not Securities, Judge Says
- Judge said XRP token is a security only in institutional sales
- Closely-watched case could shape future of crypto regulation
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A federal judge ruled that the Ripple Labs Inc. token is a security when sold to institutional investors but not the general public, a long-awaited decision that was widely hailed as a victory for the crypto industry over the SEC.
US District Judge Analisa Torres in New York on Thursday said that the crypto firm’s sales of its XRP token to sophisticated investors met the test for an investment contract under federal securities law because those buyers “would have understood that Ripple was pitching a speculative value proposition for XRP with potential profits.”