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Ripple won! Judge rules XRP is not a security, price jumps 36%
The legal dispute between the public chain Ripple and the US Securities and Exchange Commission SEC on whether XRP tokens are securities, ushered in a major update tonight! Judge Torres made a summary judgment stating that Ripple’s sale of XRP through exchanges does not constitute securities.
According to the document, the judge did determine that Ripple’s institutional sales or fundraising were securities, but the subsequent sale of XRP on the exchange did not meet the third determination element of the Howey test.
Therefore, the judge held that the
It’s okay for an exchange to sell tokens to users, as long as it’s through an order book and not ICO/IEO/Launchpad etc. In addition, Ripple’s use of XRP as a bounty, investment, grant, or transfer between executives is not considered a security.