Security

Stellar

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 <li>After a lengthy legal battle, a verdict has been reached regarding the classification of XRP, with the judge ruling that it is not a security but a digital token.</li> 
 <li>The ruling separates XRP from other cryptocurrencies like Cardano, Litecoin, and Stellar (XLM), which still await regulatory clarity.</li> 
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 In a significant development following a prolonged legal dispute, the U.S. Securities and Exchange Commission (SEC) and Ripple have finally received a verdict regarding the classification of <a href="https://www.crypto-news-flash.com/xrp-bulls-stampede-through-q2-as-xrpl-defies-sec-lawsuit-explosive-growth-report/" rel="noopener noreferrer nofollow">XRP</a>. The SEC had filed an action against Ripple Labs, Inc. (“Ripple”) and its senior leaders, Bradley Garlinghouse and Christian A. Larsen, alleging their involvement in the unlawful offer and sale of securities, a violation of Section 5 of the Securities Act of 1933. 
 According to the document in <a href="https://www.nysd.uscourts.gov/sites/default/files/2023-07/SEC%20vs%20Ripple%207-13-23.pdf" rel="noopener noreferrer nofollow">Case 1:20-cv-10832-AT-SN Document 874</a> filed on July 13, 2023, the SEC specifically accused Ripple of engaging in these violations. Furthermore, the SEC alleged that Garlinghouse and Larsen aided and abetted Ripple’s Section 5 violations. These legal proceedings set the stage for the recent ruling and regulatory clarity on the classification of XRP. 
 The judge presiding over the case, Judge Torres, issued a final ruling based on motions for summary judgment filed by both parties. The ruling provides clarity on two main aspects. Firstly, Judge Torres categorizes XRP as a digital token rather than a security, aligning with the argument put forth by John Deaton. This verdict sets XRP apart from other cryptocurrencies like Cardano, Litecoin, and Stellar (XLM) that are still awaiting regulatory clarity. XRP becomes the only crypto asset to have undergone a trial and received full <a href="https://www.crypto-news-flash.com/ripples-garlinhouse-shares-his-thoughts-on-gary-gensler-dodging-inquiries-into-ethereums-regulatory-status/" rel="noopener noreferrer nofollow">regulatory clarity</a>. 
 Secondly, the judge rules on the various types of XRP sales or distributions conducted by Ripple. The ruling is divided into four parts, addressing different aspects of these sales, as detailed in the aforementioned document. 
 To summarize, the judge’s ruling establishes that while some of Ripple’s XRP sales were deemed illegal securities offerings, the majority of them were considered legal commodity trades. 
 It is important to note that the ruling does not address whether secondary sales of XRP qualify as securities or not. Judge Torres emphasizes that this determination would depend on the specific circumstances and economic reality of each contract or transaction, citing other lawsuits involving Telegram and LBRY. 
 Following the ruling, XRP has experienced a significant rally of 30%, reclaiming the $0.60 price point for the first time this year due to increased demand. The cryptocurrency has broken through multiple resistance levels and is currently trading at $0.6046. 
 While this ruling brings clarity to the status of XRP, the case is not yet concluded, as there may be appeals or further proceedings to determine potential damages or penalties for the illegal sales. 
 In conclusion, the verdict regarding the classification of XRP as a <a href="https://www.crypto-news-flash.com/ripple-conquering-5-trillion-dollar-market-with-real-estate-tokenization-can-it-drive-xrp-price-to-a-new-ath-report/" rel="noopener noreferrer nofollow">digital token</a> and not a security sets it apart from other cryptocurrencies, highlighting the need for regulatory clarity in the industry. The allegations brought forward by the SEC against Ripple Labs, Inc. and its senior leaders further underscore the legal complexities surrounding the case.
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