Ripple Labs notches landmark win in cryptocurrency case
(Reuters) — Ripple Labs Inc. did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled Thursday, a landmark legal victory for the cryptocurrency industry.
The ruling by U.S. District Judge Analisa Torres was the first win for a cryptocurrency company in a case brought by the U.S. Securities and Exchange Commission — though it did also give the SEC a partial victory.
While the decision is specific to the facts of the case, it likely will provide ammunition for other crypto companies battling the SEC over whether their products fall under the regulator's jurisdiction.
An SEC spokesperson said the agency was pleased with part of the ruling in which the judge held that Ripple violated federal securities law by selling XRP directly to sophisticated investors.
The SEC spokesperson said the regulator was reviewing the decision.
Ripple CEO Brad Garlinghouse in an interview called the ruling “a huge win for Ripple but more importantly for the industry overall in the U.S.”
Coinbase, the largest U.S. crypto exchange, said it would again allow trading of XRP on its platform.
