<p>Since the moment <a href="https://finbold.com/topic/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> company <a href="https://finbold.com/topic/ripple/" rel="noopener noreferrer nofollow">Ripple</a> secured a <a href="https://finbold.com/new-era-for-xrp-begins-as-ripple-wins-case-against-sec-ceo-reacts/" rel="noopener noreferrer nofollow">favorable ruling</a> in the legal standoff against the United States Securities and Exchange Commission (<a href="https://finbold.com/topic/sec/" rel="noopener noreferrer nofollow">SEC</a>), which threatens the regulator’s push in the <a href="https://finbold.com/category/cryptocurrency-news/" rel="noopener noreferrer nofollow">cryptocurrency industry</a>, reactions have been pouring in, including from the SEC itself.</p><p>In short, judge Analisa Torres <a href="https://twitter.com/s_alderoty/status/1679553612236881921" rel="noopener noreferrer nofollow">concluded</a> on July 13 that <a href="https://finbold.com/cryptocurrency/xrp/" rel="noopener noreferrer nofollow">XRP</a> was not a security, that its sales on <a href="https://finbold.com/guide/best-cryptocurrency-trading-platforms/" rel="noopener noreferrer nofollow">cryptocurrency exchanges</a> or by executives do not constitute <a href="https://finbold.com/topic/securities/" rel="noopener noreferrer nofollow">securities</a> sales, and that other XRP distributions, including to charities, developers, or employees, likewise do not belong in the securities classification.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/60cbdce64fb54ca19ac78e019c39c131.PNG" /><h2 id="header-0">Concerns around ruling</h2><p>On the other hand, the court did find that past direct <a href="https://finbold.com/guide/how-to-buy-ripple-xrp/" rel="noopener noreferrer nofollow">XRP sales</a> to institutional clients do, in fact, constitute an <a href="https://finbold.com/guides/investing/" rel="noopener noreferrer nofollow">investment</a> contract, and the company’s chief legal officer (CLO) Stuart Alderoty <a href="https://twitter.com/s_alderoty/status/1679553614875070464" rel="noopener noreferrer nofollow">said</a> that further proceedings would take place on these institutional sales in accordance with the court order.</p><p>However, pro-XRP lawyer Bill Morgan has <a href="https://twitter.com/Belisarius2020/status/1679670294292881408" rel="noopener noreferrer nofollow">expressed concerns</a> with the latter part of the judgment, particularly where Judge Torres grouped the sales to on-demand liquidity (ODL) customers with institutional sales, as he argued that sales to ODL customers were very <a href="https://finbold.com/ripple-v-sec-case-update-as-of-june-30-2023/" rel="noopener noreferrer nofollow">different</a> and wondered how this ruling would affect Ripple’s ODL product and business.</p><blockquote>“Much of her reasoning generally about institutional sales doesn’t apply to sales to ODL customers who simply don’t expect profits from <a href="https://finbold.com/topic/investing/" rel="noopener noreferrer nofollow">investing</a> in or speculating on XRP. They don’t hold it long enough..seconds. Remember, this is now all current XRP sales of Ripple,” he said.</blockquote><h2 id="header-1">SEC’s ‘pathetic’ reaction</h2><p>Following the news of the ruling, the SEC <a href="https://twitter.com/EleanorTerrett/status/1679562215999918081" rel="noopener noreferrer nofollow">told</a> <em>Fox Business</em>, in a statement that Alderoty <a href="https://twitter.com/s_alderoty/status/1679616491958960128" rel="noopener noreferrer nofollow">referred to</a> as “pathetic,” that the watchdog was content with the ruling concerning institutional customers but without mentioning the part that is Ripple’s favor, as shared by journalist Eleanor Terret:</p><blockquote>“We are pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances.”</blockquote><p>In the words of the SEC’s spokesperson, “the court agreed with the SEC that the Howey test governs the securities analysis of <a href="https://finbold.com/guides/cryptocurrency/" rel="noopener noreferrer nofollow">crypto</a> transactions and rejected Ripple’s made-up test as to what constitutes an investment contract, instead emphasizing that Howey and subsequent cases have held that a variety of tangible and intangible assets can serve as the subject of an investment contract.”</p><blockquote>“Further, the court rejected Ripple’s fair notice argument, noting that the Howey test is clear and that claiming ignorance is not a defense to violating the securities laws. We’ll continue to review the decision.”</blockquote><h2 id="header-2">Exchanges relist XRP</h2><p>Meanwhile, Paul Grewal, the CLO of <a href="https://finbold.com/guide/cryptocurrency-trading/" rel="noopener noreferrer nofollow">crypto trading</a> platform <a href="https://finbold.com/review/coinbase-review/" rel="noopener noreferrer nofollow">Coinbase</a>, which had earlier delisted XRP, has <a href="https://twitter.com/iampaulgrewal/status/1679576508036259840" rel="noopener noreferrer nofollow">said</a> that his company has carefully reviewed the court decision and decided to relist the XRP token and again enable its trading on the <a href="https://finbold.com/topic/xrp/" rel="noopener noreferrer nofollow">XRP network</a>.</p><p>Additionally, as the co-founder of <a href="https://finbold.com/cryptocurrencies/" rel="noopener noreferrer nofollow">cryptocurrency</a> platform Gemini, Tyler Winklevoss, <a href="https://twitter.com/tyler/status/1679535692131467264" rel="noopener noreferrer nofollow">noted</a>, “the Ripple ruling today decimates the SEC’s case against Coinbase,” adding a message to the current SEC chief that said: “Have fun with that one, Gary Gensler.”</p><p>At the same time, the US branch of <a href="https://finbold.com/review/binance-review/" rel="noopener noreferrer nofollow">Binance</a>, Binance.US, has also decided to <a href="https://twitter.com/BinanceUS/status/1679725709957242882" rel="noopener noreferrer nofollow">bring back</a> XRP to its platform in the light of the recent ruling, enabling deposits and announcing that trading on the XRP/USDT pair will begin on July 14, at 9 a.m. Eastern Time (ET).</p><h2 id="header-3">XRP price and activity soar</h2><p>Elsewhere, XRP had pumped more than 87% in just three hours upon the news of Ripple’s victory, riding on the huge wave of <a href="https://finbold.com/guide/what-is-hodl/#Whale" rel="noopener noreferrer nofollow">whale</a> and other transactions, with its social dominance shooting up to 7.4% of all discussions online, according to the recent <a href="https://twitter.com/santimentfeed/status/1679582926110064640" rel="noopener noreferrer nofollow">data</a> from the crypto analytics platform <em><a href="https://finbold.com/guide/best-crypto-data-websites/#Santiment" rel="noopener noreferrer nofollow">Santiment</a>.</em></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/a5eab4510c034dc99c1f5841a292c4c4.PNG" /><p>Meanwhile, XRP was at press time trading at the price of $0.783, recording a massive increase of 65.68% on the day, gaining 68.64% in the last week, as well as growing 54.21% on its monthly chart, as per the latest information retrieved by Finbold on July 14.</p><p><em><strong>Disclaimer:</strong> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p><p><strong>Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/?utm_source&#61;CMC&amp;utm_medium&#61;social&amp;utm_campaign&#61;CMC&amp;utm_content&#61;long" rel="noopener noreferrer nofollow">Finbold.com</a>.</strong></p>

Ripple v. SEC case: The final update

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