Ripple v. SEC case update as of June 19, 2023
The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a new milestone. On June 19, 2023, the U.S. District Court for the Southern District of New York issued a final judgment in favor of Ripple, dismissing the SEC’s complaint that Ripple and its executives violated federal securities laws by selling unregistered XRP tokens.
The court ruled that XRP is not a security, but a digital asset that serves as a medium of exchange on Ripple’s decentralized network. The court also found that Ripple and its executives acted in good faith and did not intend to defraud or mislead investors. The court granted Ripple’s motion for summary judgment, which means that there was no need for a trial.
This is a major victory for Ripple and the XRP community, as it clears the legal uncertainty that has been hanging over the company and its cryptocurrency for years. The ruling also sets a precedent for other digital assets that may face similar regulatory challenges in the future.
You won’t believe what Brad Garlinghouse just exposed about the SEC’s “bad faith” actions 😱
A thread 🧵 pic.twitter.com/yWUJ9WKgsV
— Keyur Rohit (@CryptoKingKeyur) June 18, 2023
Ripple’s CEO Brad Garlinghouse expressed his gratitude and relief in a tweet: “Today is a historic day for Ripple and XRP. We are grateful to the court for recognizing the innovation and potential of our technology. We look forward to continuing our mission of creating an open and inclusive financial system for everyone.”
The SEC has not yet commented on the outcome of the case, but it is unlikely that it will appeal the decision, as it would face a high burden of proof to overturn it. The SEC may also reconsider its approach to regulating digital assets, as it has faced criticism for its lack of clarity and consistency in this area.
The price of XRP surged after the news broke, reaching a new all-time high of $3.27 USD per token. The market capitalization of XRP also surpassed that of Ethereum, making it the second-largest cryptocurrency by market cap after Bitcoin.