US court rules in favour of Ripple Labs in SEC case over XRP cryptocurrency

economictimes.indiatimes.com:

Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a US judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring. XRP was up 75% by late afternoon on Thursday, according to Refinitiv Eikon data. The ruling by US District Judge Analisa Torres was the first win for a cryptocurrency company in a case brought by the US Securities and Exchange Commission — though it did also give the SEC a partial victory.

While the decision is specific to the facts of the case, it likely will provide ammunition for other crypto firms battling the SEC over whether their products fall under the regulator's jurisdiction. An SEC spokesperson said the agency was pleased with part of the ruling in which the judge held that Ripple violated federal securities law by selling XRP directly to sophisticated investors. It is possible for the ruling to be appealed once a final judgment is issued, or if the judge allows it before then.

The SEC spokesperson said the regulator was reviewing the decision. Ripple chief executive Brad Garlinghouse in an interview called the ruling «a huge win for Ripple but more importantly for the industry overall in the US» Coinbase, the largest US crypto exchange, said it would again allow trading of XRP on its platform. «We've read Judge Torres' thoughtful decision.

We've carefully reviewed our analysis. It's time to relist,» Coinbase chief legal officer Paul Grewal said on Twitter. Coinbase stock closed up 24% at $107 per share on Thursday.When crypto is not a security The SEC had accused the company and its current and former chief executives of conducting a $1.3 billion unregistered securities offering by selling