The US regulator SEC expressed its satisfaction with the Ripple lawsuit, which was concluded on Thursday. Although Ripple won the case, the court justified several of the SEC’s claims for the altcoin.
SEC “satisfied” with Ripple lawsuit decision
The US regulator is expressing its satisfaction with the Ripple lawsuit that came to light on Thursday. The court ruled that XRP is not considered a security under certain circumstances, especially in sales on exchanges. However, it was also decided that XRP sales qualify as unregistered securities offerings. This shows that the said Ripple victory is not absolute.
Later, the SEC issued a statement expressing its satisfaction with the court’s decision. It welcomed the court’s conclusion that “XRP tokens were offered and sold by Ripple as investment contracts in certain circumstances in violation of securities laws.”
The regulator once again emphasized the importance of the Howey test. The SEC argues that the court rejected Ripple’s alternative test in determining what constitutes an investment contract.
According to the ruling, the court applied three versions of the Howey test to determine that institutional sales of XRP were indeed investment contracts. The court stated that “reasonable investors in the position of Institutional Buyers will purchase XRP with the expectation that they will profit from Ripple’s efforts.”
“We will continue to review the decision”
While acknowledging that XRP does not inherently contain the Howey requirements of an investment contract, the resolution affirmed that institutional sales of XRP meet these criteria. The SEC stressed that the outcome of the lawsuit highlights the applicability of the Howey test to a variety of tangible and intangible assets in the context of investment contracts.
The regulator also addressed Ripple’s fair reporting argument. He defended the court by stating that the Howey test was open. However, he countered the decision, stating that ignorance did not constitute a defense for violating securities laws. “We will continue to review its decision,” the SEC spokesperson said.
The SEC first filed a lawsuit against Ripple, CEO Brad Garlinghouse, and Christian Larsen in December 2020. This decision marks an important development in the legal battle between Ripple and the SEC. Sheds light on XRP’s regulatory treatment and Ripple’s selling practices. The implications of the decision reaffirmed the SEC’s stance on implementing the Howey test. Therefore, the decision extends beyond Ripple and XRP. The Ripple lawsuit will also bring clarity to the regulatory framework surrounding cryptocurrencies. It will provide further guidance on the liabilities of organizations that sell cryptocurrencies.
XRP returns to major centralized exchanges: Altcoin market skyrockets
After the partial SEC victory for Ripple, all major exchanges including Coinbase have started listing XRP again. cryptocoin.com As we have reported, the last exchanges to join the stream were Binance.US and Crypto.com.
Meanwhile, XRP continues to hold its price rally above 60%. After the positive case result on 13 July, it rose 30% in the first place. The momentum is gaining momentum today with the stock market listings. The altcoin is currently trading at #4 by market cap.
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