The long legal dispute between Ripple Labs and the SEC (U.S. Securities and Exchange Commission) has come to an end, and the verdict marks a turning point in cryptocurrency regulation.
After more than four years of litigation, a judge ruled that XRP sales in secondary markets do not constitute the offering of a security, making it clear that retail operations do not fit the definition of the famous Howey Test. In other words: buying XRP on an exchange is not the same as investing in Ripple shares.
What does this victory mean?
Legal precedent: Not all tokens should be automatically considered securities. This could benefit other projects in dispute with the SEC.
Final closure: Ripple and the SEC withdrew their appeals, leaving the ruling as final.
Economic penalty: Ripple will pay a fine of $125 million and will maintain restrictions on institutional sales, but avoids more severe penalties.
Market reaction
The price of XRP responded strongly, rising more than 10% after the news broke. Investors interpret it as a sign of confidence and as a victory that could inspire other cryptocurrencies to fight against overly restrictive interpretations of the law.
Impact on the crypto ecosystem
This ruling not only benefits Ripple but also opens the door to a clearer and fairer regulatory framework for the industry in the U.S. and other countries. From now on, authorities may be forced to differentiate between the use of a token as an investment and as a mere digital asset for transactions.
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