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A US court judge says the XRP token was a form of investment contract when it was sold by Ripple to investment institutions. The case, brought by the US Securities and Exchange Commission (SEC), is one of the largest in history to determine whether tokens are securities.
Judge Analisa Torres In the court ruling, the sale of 728.9 million dollars of XRP tokens by Ripple to hedge funds was equivalent to the offering of unregistered securities; However, this does not apply to planned sales as well as sales of XRP by Ripple CEOs. The case is set to go to a jury to decide the other claims.
According to VergeThe US Securities and Exchange Commission has claimed that Ripple did not provide investors with the information needed to assess investment risk.
Experts have long raised important questions centered on whether or not cryptocurrencies are considered securities. XRP investors consider the new court ruling positive and the price of this token has grown by 30% since the ruling. Selling XRP on exchanges is not considered an unregistered securities offering.
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