In a historic ruling on July 13, the court declared that XRP, the crypto token associated with Ripple, is not a security in and of itself. This decision is not only significant for Ripple but also for the entire U.S. crypto industry. The case revolved around the question of whether XRP could be considered an investment contract and thus classified as a security under the law. The court firmly rejected the SEC's argument that all crypto tokens are securities.

Ripple's CEO, Brad Garlinghouse, expressed that this ruling marks a turning point in the SEC's regulation by enforcement agenda. He hopes it will prompt Congress to establish clear rules for the crypto industry in the U.S. The court clarified that Ripple's XRP sales on exchanges, sales by Ripple executives, and distributions to developers, charities, and employees are not securities.

Ripple's Chief Legal Officer, Stu Alderoty, highlighted the significance of the court's distinction between the token itself and the manner in which it was sold. This ruling sets a precedent that could be used by others targeted by the SEC, affecting how digital tokens are classified in the country going forward.

Though certain contractual sales to institutional investors still face further court proceedings, all other aspects of the case have been settled as a matter of law. Ripple's pursuit of sound crypto regulation in the U.S. will continue, and the company will focus on investing in jurisdictions with clear regulatory frameworks. It has already received approvals and recognition from authorities in Singapore, Japan, Switzerland, the UAE, and the UK, which had previously determined that XRP is not a security.

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