2023-07-14
The
U.S. Securities and Exchange Commission sued
Ripple in December 2020. It
accused Ripple Labs Inc and its current and former chief executives of
conducting a $1.3 billion unregistered securities offering by selling XRP.
U.S. judge ruled on July 13, 2023 that Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges. XRP price went up 67.76% on July 14.
Judge
Analisa Torres of the U.S. District Court for the Southern District of New York ruled that Ripple's XRP sales on public cryptocurrency
exchanges were not securities under the law, because purchasers did not have a
reasonable expectation of profit tied to Ripple's efforts.
Judge
Torres also found that Ripple violated securities law when it sold XRP to
institutional investors. Ripple first sold around $728.9 million worth of XRP directly
to institutional investors and hedge funds.
