The XRP token and the Ripple project got some huge news on the biggest question of the day in the entire crypto industry. That question, “what is a security?”. Today, a judge announced that while the trial can and will go on, XRP got a huge, huge win.
Let’s see what it’s all about and why this XRP decision helps the industry.
Today, Judge Torres in US District Federal Court said that the pre-programmed sales of Bard Garlinghouse and Chris Larson’s XRP into the market is not an offer of sale of securities or an investment contract.
This is not the only thing in the SEC lawsuit against Ripple. But it is, by far, the most important question and outcome for the entire crypto industry. Anyone who holds crypto as an investment got a little boost today.
An Expert Breakdown of the XRP Details
This tweet thread gives a good explanation of what is happening and why. We will break it down for you.
1/6 Let me explain a little of what this $XRP #Ripple ruling says and what it means for #crypto in general. (thread) https://t.co/GSjAdQVdGm
— Timothy Peterson, CFA CAIA (@nsquaredcrypto) July 13, 2023
- First, XRP’s direct sales of tokens to institutional investors ARE a sale of unregistered securities. That means they are guilty on that count and probably subject to a fine.
- ALL other sales, especially sales to retail investors and through exchanges are NOT a sale of unregistered securities. This is the big one right here.
One last important point is that if this decision holds up (meaning the SEC does not appeal and win), then this helps Coinbase too. Coinbase can’t be accused of selling unregistered securities on its exchange if one of those same assets (XRP) is ruled as not a security.
So this could have a huge, positive domino effect for crypto in the US. But that’s looking down the line. Right now, today, the industry got a big win in what is still the most important market for crypto companies in the world.
Let’s hope common sense continues to rule.
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