Ripple Labs, the company associated with the XRP token, has received a mixed verdict from US District Judge Analisa Torres.
The judgment brought some closure to Ripple's legal battle with the U.S. Securities and Exchange Commission (SEC), which has cast a long shadow over the digital currency's future since December 2020.
According to the summary judgment, Judge Torres deemed institutional sales by Ripple as securities. However, she refrained from labeling all other sales in the same way. The case is now going to move to trial.
Institutional sales by Ripple, which the court deemed as unregistered securities transactions, amounted to $728 million. On the other hand, programmatic sales and other sales, which the court did not classify as securities transactions, totaled $1.366 billion ($757 million from programmatic sales and $609 million from other sales).
A "significant win" for XRP
The decision sent a positive ripple through the crypto market as it avoided classifying XRP, the sixth-largest digital token by market value, as a security in its entirety. Attorney Drew Hinkes tweeted, "Looks like institutional sales were sales of a security, but other sales were not."
The court did not address secondary market sales of XRP, indicating the complexity of determining such sales as offers and sales of investment contracts. Such determinations would depend on the totality of circumstances and the "economic reality" of that specific contract, transaction, or scheme.Crypto commentator Adam Cochran believes that the version represents a significant win for XRP, given its centralized foundation, key figureheads, standard sales via exchanges, and formal distribution programs.
"Planning for that proper party"
Following the ruling, the price of XRP surged by 16.5% to $0.55, adding roughly $4 billion to its market cap, which now stands at $28.8 billion.
Brad Garlinghouse, the CEO of Ripple, has expressed gratitude and optimism following the recent court decision regarding XRP.
He reiterated his stance from December 2020, claiming that they were on the right side of the law, and views this ruling as a victory not only for Ripple but for all crypto innovation in the United States.
Garlinghouse also hinted at future developments and jokingly suggested plans for "that proper party."
Charles Hoskinson, founder of Cardano and co-founder of Ethereum, congratulates XRP on the recent ruling, seeing it as a positive step not just for XRP but for the entire cryptocurrency industry.