U.S. District in its 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

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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.

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.