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- 1 Ripple Labs scores another victory after the submission of the Hinman documents.
- 2 The case was predicated on the SEC’s claim that XRP is a security.
- 3 XRP was trading at around $0.6 at the time of publishing.
Judge Analisa Torres of the United States District Court in the Southern District of New York gave a summary judgment in favor of Ripple Labs, according to which XRP is not a security.
Ripple Labs was embroiled in the case filed by the US Securities and Exchange Commission (SEC) back in 2020.
XRP price shot up by over 24% soon after news of the ruling was out.
The SEC sued Ripple Labs for offering XRPs as unregistered securities. The judgment comes after numerous amicus briefs, court appearances, countless speculations and claims.
Ever since the Hinman documents were submitted to the court, a judgment favoring Ripple Labs was expected.
CoinTelegraph reported the development with an excerpt from the court documents:
“Defendants’ motion for summary judgment is GRANTED as to the Programmatic Sales, the Other Distributions, and Larsen’s and Garlinghouse’s sales, and DENIED as to the Institutional Sales.”
Ripple CEO Was Optimistic About 2023
CEO Brad Garlinghouse was of the opinion that the case would be over in late 2022 or early 2023 itself. Earlier in January, Garlinghouse said he was optimistic that 2023 would be a good year for regulations.
On May 17, TheCoinRepublic reported that the court had denied the SEC from sealing the crucial Hinman documents. The Hinman documents contain the speech of a former SEC director William Hinman which raised questions on the credibility of SEC’s arguments. The speech does not contain any incriminating or direct claims that could influence the judge’s decision. However, the speech revealed the SEC’s internal discussions on the basis of regulating tokens.
Hinman documents showed that the SEC was uncertain whether decentralized assets such as XRP could be classified as securities as there was no controlling organization.
The documents were unsealed and revealed to the public on June 12 after months of appeals by Ripple Labs because the SEC initially refused to unseal the documents after submitting the same to the court.
A Landmark Judgement For Crypto?
Ripple V SEC is perhaps one of the most important cases for an industry based on a novel concept. The SEC and the Commodities and Futures Trading Commission (CFTC) claim that cryptos and digital assets are securities and commodities respectively.
Judge Torres’s ruling could accelerate the process of developing crypto regulations. The Congress has been drafting cryptocurrency regulations, however, a comprehensive set of regulations, something akin to the traditional finance sector is the need of the hour. Clearing the air about jurisdictions will certainly help the process.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
