Ripple Wins Key Motion in SEC Lawsuit — XRP Retail Sales "Not Securities," Judge Affirms
A federal judge affirmed that Ripple's programmatic XRP sales to retail investors did not constitute unregistered securities offerings, dealing a significant blow to the SEC's case and sending XRP price surging.
A U.S. District Court judge has affirmed a landmark ruling that Ripple Labs' programmatic sales of XRP tokens on public exchanges did not violate securities laws, dealing a major blow to the SEC's ongoing case against the company.
Judge Analisa Torres upheld her earlier ruling in a summary judgment motion, confirming that retail XRP purchases lacked the "reasonable expectation of profits from Ripple's efforts" required to classify them as securities under the Howey Test.
XRP immediately rallied over 12% on the news, briefly touching $0.68 before settling. The ruling is seen as a landmark precedent for the broader crypto industry, potentially limiting the SEC's ability to classify similar altcoin sales as securities.