In a groundbreaking ruling that is sending shockwaves through the cryptocurrency world, United States District Judge Analisa Torres declared that XRP, the digital asset at the center of a high-stakes legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), is not a security. With the gavel’s resounding strike, Judge Torres shattered expectations, revealing a verdict that will undoubtedly shape the future of the crypto landscape. While the ruling brings newfound clarity to XRP’s legal status, it also raises intriguing questions about the implications for Ripple, the broader crypto industry, and individual investors. The reverberations of this decision have already ignited a surge in XRP’s value, leaving social media ablaze with speculation and the entire cryptocurrency market experiencing a significant uptick. As we delve into the ramifications of this landmark case, it becomes increasingly evident that Ripple’s victory carries far-reaching consequences that extend well beyond its own corporate interests. The Official Ruling On July 13th, United States District Judge Analisa Torres officially ruled that XRP is not a security. US Judge Torres ruled that XRP sold on exchanges “programmatically” to public buyers “did not constitute the offer and sale of investment contracts”. The ruling came down to the third part of the in which the Judge determined that programmatic buyers could not reasonably expect a profit, or an increased value to their investment. Howey test However, the US Judge did rule that “Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act.” The court found that Ripple sold $728.9 million of XRP directly to certain Institutional Buyers in written contracts. Judge Torres determined that these direct sales were made by investors who “would have purchased XRP with the expectation that they would derive profits from Ripple’s efforts.” Here is a direct link to the official ruling by US District Judge Analisa Torres: https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.874.0.pdf “Having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong. Whereas the Institutional Buyers reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP. Programmatic Buyers could not reasonably expect the same. Indeed, Ripple’s Programmatic Sales were blind bid/ask transactions, and Programmatic Buyers could not have known if their payments of money went to Ripple, or any other seller of XRP. Since 2017, Ripple’s Programmatic Sales represented less than 1% of the global XRP trading volume. Therefore, the vast majority of individuals who purchased XRP from digital asset exchanges did not invest their money in Ripple at all. An Institutional Buyer knowingly purchased XRP directly from Ripple pursuant to a contract, but the economic reality is that a Programmatic Buyer stood in the same shoes as a secondary market purchaser who did not know to whom or what it was paying its money.” - United States District Judge Analisa Torres What’s Next? Unsurprisingly, XRP has exploded for a 30% gain in the short time since the news dropped. Social media is going wild with hype, and all cryptocurrencies seem to be experiencing gains as well. Many have speculated about what would happen after a Ripple victory in this landmark case, but now we are living it, and it will be exciting to see what actually happens from here on out. Personally, I think this was an extremely important legal victory for Ripple, as well as the rest of the crypto industry and even individuals like us. I want to take a moment here to thank Ripple for taking on the SEC in a fight and scoring a huge win. What are your thoughts on this news? How high will XRP rise? What does this mean for the world of cryptocurrency? Check out my Socials: https://linktr.ee/zerorequiem0x Also published here
