$XRP: Summary of the Decision in SEC vs. Ripple Labs, Inc.
Case Background
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Inc. in December 2020, alleging that the company had conducted an unregistered securities offering by selling its native token, XRP. Ripple has continuously maintained that XRP is not a security and that its sales were lawful.
What Ripple and the SEC Requested
Both parties submitted motions in an effort to conclude the case:
Ripple requested that the court dismiss certain claims, particularly those regarding its institutional sales of XRP.
The SEC appealed a previous decision by Judge Analisa Torres, who ruled that XRP is not a security when sold on public exchanges.
Ripple also filed a cross-appeal challenging the court's finding that institutional sales of XRP did constitute unregistered securities offerings.
Court’s Decision
The SEC's motion for appeal was dismissed without challenging the earlier ruling that XRP is not a security.
Ripple’s cross-appeal was dismissed on procedural grounds, not on the merits of the case.
The court left in place the $125 million penalty Ripple must pay for its institutional sales, but this may be revisited.
What This Means for XRP and Crypto
The ruling reaffirms that XRP is not a security when traded on secondary markets.
Ripple and the SEC appear to be cooperating to resolve the case fully.
Ripple's legal team has made it clear this is not a setback: “Nothing in today’s order changes Ripple’s wins,” said Chief Legal Officer Stuart Alderoty.
Conclusion
While the institutional sales issue is still under legal discussion, the broader victory for Ripple and XRP holders stands firm. This case sets an important precedent for the classification of cryptocurrencies in the United States and may influence future SEC actions against other crypto firms
