Today a judge in the Southern District of New York released her ruling on whether XRP is a security after the Securities and Exchange Commission (SEC) sued Ripple at the end of 2020. The ruling gave wins to both sides, but the bigger victory went to Ripple.
The judge looked at three separate sets of sales of XRP to:
In the critical finding, District Judge Analisa Torres concluded that the XRP sales by Ripple via exchanges to public buyers were indistinguishable from secondary market sales. The buyers would not have known their payment was going to Ripple. She deemed that investors needed to believe their money was going to Ripple to constitute an investment contract under the “Howey test” for a security.
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