In a landmark judgment yesterday (Thursday), a US court ruled that XRP token sale to retail investors on public exchanges did not violate the securities law. However, the token sale to sophisticated investors did violate federal securities law.
The judgment market has a massive partial win for Ripple , which has been fighting the legal battle with the US Securities and Exchange Commission (SEC) since December 2020. It will impact other crypto companies engaged in a legal fight with the American regulator.
The ruling by US District Judge Analisa Torres stated that XRP sales on public exchanges were not securities as the retail investors did not have any reasonable expectation of profits from the efforts of Ripple as a company. It was a “blind bid/ask transactions,” and the retail buyers “could not have known if their payments
