Ripple’s major success in its court battle with the SEC: Law Decoded, July 10–17
Given the current push for crypto regulation, the industry breathed a sigh of relief on July 13 as Ripple Labs scored a partial victory in its legal battle with the United States Securities and Exchange Commission (SEC) dating back to 2020.
Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled that Ripple’s XRP (XRP) token is not a security, but only regarding programmatic sales on digital asset exchanges. However, the SEC also notched up a victory of its own, with the judge ruling that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey test.
Immediately after the news, Ripple became the fourth-largest cryptocurrency by market capitalization. Mere hours after the ruling, XRP’s market cap surged a whopping $21.2 billion to reach a new yearly high of $46.1 billion, pushing it up from seventh position to beat out Circle’s USD Coin (USDC) and Binance’s BNB (BNB) token in the process.
Industry heavyweights believe the decision will aid crypto exchanges Coinbase and Binance in their respective SEC lawsuits. Tyler Winklevoss, the CEO of cryptocurrency exchange Gemini, said the ruling “decimates” the SEC’s case against Coinbase. His twin brother, Cameron Winklevoss, referred to the ruling as a “watershed moment” that will make it difficult for the SEC to claim authority over cryptocurrencies. United States Senator Cynthia Lummis stated that the verdict reinforces the immediate requirement for Congress to provide a thorough crypto framework that prioritizes the safeguarding of consumers.
South Korea’s Financial Services Commission (FSC) announced a new bill requiring all firms that issue or hold cryptocurrencies like Bitcoin (BTC) to disclose their
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