Wow. A federal judge finally handed down a decision in SEC v. Ripple, and it was a bombshell. Most legal observers—even in the crypto world—predicted the company would lose, and that the court would declare that the XRP tokens it sold were unregistered securities. That’s not how it turned out.
A Game-Changing Decision
On Thursday, a federal judge ruled the Securities and Exchange Commission (SEC) had gotten it wrong, stating that "the vast majority of individuals who purchased XRP from digital asset exchanges did not invest their money in Ripple at all." The effect on the crypto markets was electric.
As of Friday morning:
- The price of XRP tokens surged 65%.
- Other popular tokens under SEC scrutiny (e.g., Solana, Cardano) rose over 25%.
- Shares of Coinbase, also facing SEC litigation, climbed above $100.
Against all odds, crypto has stormed back. After a year of scandals, regulatory pressure, and disillusionment, the industry has caught the break it desperately needed. Meanwhile, SEC Chair Gary Gensler faces backlash as the court sided with the crypto world on jurisdictional overreach.
What Happens Next?
The legal dust is still settling:
- The ruling wasn’t a clean win for Ripple—the judge found institutional sales of XRP did qualify as unregistered securities.
- Lawyers are puzzled by the distinction, and the SEC may escalate its case against Ripple.
But the impact is already clear:
- Exchanges like Coinbase and Kraken have relisted XRP.
- Retail sales of tokens like Solana are deemed non-securities under the judge’s reasoning.
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Industry Reactions
Paul Grewal, Coinbase’s top lawyer, noted the ruling removes the "sword of Damocles" hanging over the company but expects Gensler to persist with aggressive enforcement. Grewal hopes Congress will step in to clarify crypto regulations.
Sheila Warren of the Crypto Council summed it up: The "regulatory permafrost" is thawing, and the industry enters a new era.
Key Takeaways:
- Ripple’s partial victory reshapes crypto regulation.
- Market optimism fuels XRP and altcoin rallies.
- SEC’s authority is challenged, prompting calls for legislative clarity.
FAQs
What was the SEC’s claim against Ripple?
The SEC alleged Ripple sold XRP as unregistered securities. The court disagreed for retail sales but upheld it for institutional buyers.
How did the market react?
XRP soared 65%, and other tokens (Solana, Cardano) jumped over 25%. Coinbase shares also surged.
Will the SEC appeal?
Possibly. The agency may challenge the ruling or double down on Ripple’s institutional sales.
👉 Explore crypto’s regulatory future
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