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Ripple's XRP token can be considered a security: US federal court

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U.S. District Court of the Southern District of New York ruled that Ripple's XRP token can be considered as a security when used for institutional sales, but not for public sales.

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Judge Analisa Torres denied the SEC's request for summary judgment related to programmatic sales of XRP, including sales by two of the company’s former and current leaders.

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The SEC has been litigating against Ripple since December 2020, accusing the company of raising $1.3 billion through an alleged unregulated digital asset securities offering.

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Following the court's decision, XRP's value increased by 28% to 60 cents, a value it hasn't reached since May 2022.