According to a federal judge, the Ripple Labs token (XRP) is only a security when it is offered to institutional investors and not to the general public. The verdict results in a split victory for the SEC and a resounding victory for Ripple investors.

The SEC's claim that XRP is a security is partially dismissed, according to New York District Judge Analisa Torres, who also determined that Ripple's XRP is not a security.

XRP institutional sales can be considered securities.

The rule is regarded as a historic choice that could have profound effects on the sector.

As investors reacted to the news, the ripple price surged, rising 30% from a low of 0.46926 to a high of 0.64888.