U.S. District Court in its July, 2023 ruling determined that XRP is not a security when sold on public exchanges, but found that Ripple's direct institutional sales of XRP violated federal securities laws

Event date

July 31, 2023

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In July 2023, Judge Torres ruled that institutional sales violated securities laws but that exchange-based retail sales did not, triggering a ray of optimism in the crypto industry.

Over a year ago, Judge Analisa Torres ruled that some of Ripple’s sales, called programmatic, of XRP did not violate securities laws because of a blind bid process in place for them. She did, however, rule that other direct sales of the token to institutional investors were securities. That second part regarding institutional investors meant that Ripple would be fined $125 million.

In a 2023 partial ruling, Judge Torres found that XRP was not a security in public exchange sales, but that Ripple’s direct institutional sales did violate federal securities laws.

After years of litigation, the court in July 2023 issued a summary judgment, ruling partially in favor of both parties.

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Week 31 of 2023