The cryptocurrency community has seen success thanks to Ripple’s XRP Token

Judge Analisa Torres issued an important decision on the selling of XRP tokens in a recent court filing on Thursday. The court ruled that the $728.9 million sale of XRP coins to institutions would be considered an unregistered securities offering. It’s crucial to remember that sales of XRP to the general public are not covered by this decision.

In late 2020, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Ripple Labs. The main goal was to determine if the XRP cryptocurrency from Ripple should be classified as a security or a commodity.

To be more precise, the SEC charged Ripple CEO Brad Garlinghouse and co-founder Chris Larsen with selling unregistered securities in a complaint that was brought against them in December 2020. The 1946 “Howey Test,” which is often used in the US to assess investment contracts and securities, was at the centre of the legal discussion. Many cryptocurrency traders, though, contend that 21st-century digital assets shouldn’t be judged by 20th-century norms.

As a digital token, XRP “does not inherently meet the Howey requirements of an investment contract, such as a contract, transaction, or scheme,” the court brief states.

The SEC v. Ripple case was characterised by many holdups and significant information demands from both sides. Thousands other XRP owners started their own legal proceedings at the same time.

The price and availability of XRP were adversely affected by the lengthy court dispute. The asset was delisted from many trading platforms, and owners had trouble getting access to their XRP holdings. The current decision, however, delighted traders as the price of XRP soared by more than 65% in a single day, hitting around $0.7873 per coin. As a consequence, on Friday, XRP rose to the position of fourth-largest cryptocurrency by market capitalization.

XRP was initially intended to reduce the time and expense involved with currency conversion costs by enabling frictionless financial transactions between various currencies. However, being a cryptocurrency, the value of XRP was prone to swings, and many people bought crypto assets with the idea of keeping them for prospective gains.