Ripple has won the lawsuit against the United States Securities and Exchange Commission (SEC). The crypto industry is ecstatic, including Ripple’s CEO, Brad Garlinghouse. On Twitter, the CEO shared what was most important to him in the lawsuit.
Ripple has won the lawsuit against the SEC, making history in the crypto industry. In December 2020, the lawsuit was filed against the company, alleging that Ripple was selling securities without a license in relation to their cryptocurrency, XRP. CEO Brad Garlinghouse and Chris Larsen were also named in the lawsuit.
The judge, Analisa Torres, ruled that XRP was not a security in the secondary market, such as on exchanges. However, she did find that Ripple violated the law by engaging in direct sales to hedge funds and investors. In other words, Ripple’s Initial Coin Offering (ICO) was in violation of the law, but the sales on exchanges were not.
This is fantastic news for the accused CEOs as it means that the charges against them will be dropped. Brad Garlinghouse responded on Twitter:
The most important part of this ruling:
“XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.”
This is a now a matter of law (not up for trial.)
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at email@example.com