Ripple scores a partial win over SEC; institutional sales of XRP deemed a no-no, but programmatic sales get a green light.
The court ruled that Ripple’s institutional sales of XRP tokens violated federal securities laws, but their programmatic sales did not. This brought some much-needed clarity to crypto regulations, even as the question of what constitutes a digital asset as a security under U.S. law remains largely unsettled.
In the land of tech giants and startups, Ripple has shown the mighty SEC it can put up quite a fight. And the battlefield? The court of the Southern District of New York, no less. For our dear Ripple, it’s a tale of sweet victory and sour defeat. Institutional sales of their XRP tokens were flagged down by the law, and if you’ve been reading between the lines, you know this means “uh-oh” for Ripple.
But wait, it’s not all doom and gloom! The court also passed a judgment as refreshing as a cold scoop of raspberry ripple on a hot day. In a turn that left us all a bit dizzy, Ripple’s XRP tokens sold on exchanges and through algorithms were given the thumbs up. In other words, programmatic sales are cool as a cucumber. This judgment adds a sprinkle of clarity to the ambiguous dessert that is cryptocurrency regulation.
One small step for Ripple, one giant leap for crypto-kind! Well, sort of. The judgment falls short of defining the circumstances under which a digital asset is a security under U.S. law. Still, the ice cream hasn’t melted completely. There’s a silver lining, folks, because Gemini might list XRP tokens now.