Ripple’s sale of XRP tokens on exchanges and through algorithms did not constitute investment contracts, but the institutional sale of the tokens did violate federal securities laws, a New York court ruled on Thursday.
The court published the conclusions in an order partially granting a motion for summary judgment in the ongoing case against the blockchain platform by the U.S. Securities and Exchange Commission. The SEC accused the firm and its executives CEO Brad Garlinghouse and co-founder Christian Larsen of failing to register XRP as security.
The price of XRP jumped 24% on the news.
“We said in Dec. 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the U.S. More to come,” Garlinghouse tweeted following the order.
Edited by Aoyon Ashraf.
