Ripple Labs Inc., the company behind the XRP cryptocurrency, won a major victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on Thursday.

U.S. District Judge Analisa Torres ruled that the SEC had failed to prove that XRP was a security, which would have subjected Ripple to a number of regulatory requirements. The ruling is a major setback for the SEC, which has been cracking down on cryptocurrency companies in recent years.

The price of XRP surged in response to the ruling, rising by more than 27% in the hours after it was announced. The token is now trading at around $0.34, its highest level in over a year.

XRP Price Soars after ruling.

The SEC’s lawsuit against Ripple was filed in December 2020. The agency alleged that Ripple had raised more than $1.3 billion through the sale of XRP in an unregistered securities offering.

Ripple has always maintained that XRP is not a security, but the SEC has argued that it meets the definition of a security because it is an investment contract.

The ruling by Judge Torres is a major victory for Ripple, but the case is not over yet. The SEC could still appeal the ruling, and the case could go to trial.

However, the ruling is a positive sign for the cryptocurrency industry, and it could pave the way for other companies to launch their own cryptocurrencies without fear of running afoul of the SEC.

Here are some of the key takeaways from the ruling:

• The SEC failed to prove that XRP was a security.
• The ruling is a major victory for Ripple and the cryptocurrency industry.
• The ruling could pave the way for other companies to launch their own cryptocurrencies.

Are you happy with this ruling? Were you rooting for Ripple Labs? Let us know in the comments section!

Join our Blockchain forum here to discuss more Blockchain related topics.