US court judgment: XRP token from Ripple Labs is not considered classic securities-greater scope for trading in cryptocurrencies

Von Krypto News Österreich

Ripple Labs hat in dem Streit mit der US-Börsenaufsicht Securities and Exchange Commission (SEC) einen juristischen Erfolg erzielt. Das US-Bundesgericht für den südlichen Bezirk von New York entschied am Donnerstag, dass der von Ripple ausgegebene Token XRP kein klassisches Wertpapier im Sinne der US-Rechtsprechung ist, solange er auf öffentlichen Kryptobörsen gehandelt wird, wie zum Beispiel auf Coinbase, Binance und Kraken. Dies bedeutet, dass die SEC nicht zuständig ist und dass Ripple nicht den speziellen Anforderungen und Schutzmechanismen der Behörde folgen muss. Die Entscheidung erging aufgrund der Feststellung, dass die sogenannten Howey-Kriterien für ein Wertpapier nicht greifen, wenn XRP „programmatisch“ gehandelt …
Ripple Labs achieved legal success in the dispute with the US stock exchange supervision Securities and Exchange Commission (SEC). The US Federal Court for the southern district of New York decided on Thursday that the token XRP issued by Ripple is not a classic securities in the sense of the US case law as long as it is traded on public crypta exchanges, such as on Coinbase, Binance and octopus. This means that the SEC is not responsible and that Ripple does not have to follow the special requirements and protective mechanisms of the authority. The decision was made on the basis of the establishment that the so-called Howey criteria for a security do not apply if XRP acts "programmatically" ... (Symbolbild/KNAT)

ripple Labs has achieved legal success in the dispute with the US stock exchange supervision Securities and Exchange Commission (SEC). The US Federal Court for the southern district of New York decided on Thursday that the token XRP issued by Ripple is not a classic securities in the sense of the US case law as long as it is traded on public crypta exchanges, such as on Coinbase, Binance and octopus. This means that the SEC is not responsible and that Ripple does not have to follow the special requirements and protective mechanisms of the authority.

The decision was made on the basis of the determination that the so-called Howey criteria for a security do not apply if XRP is traded "programmatically" and is open to the general public. The Howey criteria are a test that should determine whether a transaction is considered a "investment contract" and thus as securities. This would be the case if it is a "money investment in a joint company with the reasonable expectation that the efforts of other profits will be achieved".

However, the court also decided that the Howey criteria are taking effect if XRP is "institutionally" traded and certain potential buyers are specifically offered. In this case, an investment contract with Ripple would be concluded, which means that the purchase under the securities laws and the supervision of the Sec.

The SEC had accused Ripple Labs at the end of 2020 that they have deliberately deceived investors by offering the company worth $ 1.3 billion without registering them as securities. As a result, the potential buyers have been withheld information about the cryptocurrency and the Ripple business model. The court now rejected the main part of this lawsuit what was expected by experts.

The court's decision is celebrated in the crypto industry as a great victory and precedent. It means that the scope for trading cryptocurrencies in the USA will grow again. Immediately after the verdict was pronounced, the value of XRP rose by over 60 percent compared to the previous day. The digital currency was listed on Friday afternoon at around 77 US cent, the highest stand in over a year. Later, however, she gave up again by 8 percent and was traded at 73 cents. Other crypto values ​​also temporarily benefited from the judgment.

The SEC announced that he wanted to check the judgment first and keep the passage to the next instance open.