Ripple’s Mixed Victory Over SEC in XRP Case Opens Doors to US Market
(Originally posted on : Crypto News – iGaming.org )
Ripple’s legal tussle with the U.S. Securities and Exchange Commission (SEC) reached a significant milestone recently, with the company gaining some much-needed clarity on its future operations. This new understanding is reshaping how the payment firm will function, particularly in the context of its XRP sales.
The SEC initiated a lawsuit against Ripple in late 2020, accusing the company of selling XRP as an unregistered security. This marked a significant challenge for the company, sparking a long legal process to determine the nature of its core product.
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In a ruling last month, US District Judge Analisa Torres stated that Ripple’s automated open-market sales of XRP, termed programmatic sales, did not equate to security offerings. This was a counterpoint to the SEC’s allegations and marked a win for Ripple.
However, the judge did agree with the SEC on one count: Ripple’s sale of XRP directly to institutional buyers was deemed a securities offering.
Ripple’s Response
Monica Long, Ripple’s President, expressed satisfaction with the court’s ruling in an interview with CNBC:
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“It’s been a couple of weeks now since the judge’s ruling in our case, providing clarity that XRP is not a security, which we’re very happy about. It gives us a lot of clarity in terms of how Ripple will operate its business going forward. We are re-engaging with a lot of the US market.”
Long also pointed out that much of Ripple’s recent expansion has occurred outside the United States. In regions like the United Kingdom, Europe, Singapore, and Dubai, Ripple has found what Long refers to as “more regulatory clarity.” The company’s growth in these foreign jurisdictions underscores the importance of clear and stable regulatory environments.