TL;DR
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News broke yesterday that Ripple (XRP) won its lawsuit against the SEC – proving in court that the XRP token is not a security when being sold to the public.
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Though the judge did rule that when XRP was being sold to institutions – it did, in fact, fit the description of a security…
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This means crypto projects will think twice before selling most of their initial token supply to big institutional investors before they go live to the public (which is a good thing).
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This new legal precedent means tokens that function in a similar way to XRP will likely be able to get the same ruling if/when the SEC tries to sue them.
Full Story
You know those scenes from Maury and Jerry Springer, where one of the guests would be told:
“You…are…NOT the father!”
(At which point they’d go on a rabid and frenzied victory lap around the studio?)
Yeah, well – that’s exactly what folks in the crypto space are doing right now.
As of ~10 mins before this writing, news broke that Ripple (XRP) won its lawsuit against the SEC – proving in court that the XRP token is:
“…NOT a security!” (security = a stock).
Meaning the XRP token won’t be under the purview of the SEC (which would cripple it).
But there is a caveat.
XRP was not found to be a security when it was being sold to the public…
But the judge ruled that when XRP was being sold to institutions – it did, in fact, fit the description of a security…
Which (weirdly enough) is great for retail investors!
This means crypto projects will think twice before selling most of their initial token supply to big institutional investors before they go live to the public.
Which should help prevent single entities being able to buy-in super cheap, then dump all of their holdings (and tank the price) once a token is publicly available.
Either way you slice it – it’s good news!
And the token’s price is already on a tear! It jumped about 25% in fifteen minutes:
