The Ripple Labs case against the SEC concluded in August 2023 when both parties agreed to drop their appeals. The support from XRP token holders significantly affected the outcome of the judicial process.
SEC Allegations and Court Ruling
The SEC filed a lawsuit against Ripple in 2020, accusing the company of selling the XRP token as an unregistered security. In 2023, Judge Analisa Torres ruled that only some tokens could be classified as securities, which formed the basis of the final court decision.
Impact of XRP Army on the Case
Attorney John Deaton stated that XRP token holders, known as ‘XRP Army’, played a crucial role in the process. He noted that the evidence of their influence on the case is now undisputed: 'If anyone argues otherwise, they are either ignorant of the facts or intentionally misleading.' Ripple's vice president Deborah McCrimmon added that the efforts of token holders highlighted that the case affected a broad audience.
XRP Market After Case Conclusion
After the case concluded, the XRP token experienced mixed results. Judge Torres issued a mixed ruling, determining that tokens sold on public exchanges do not meet the definition of a security, while tokens sold to institutional investors were considered unregistered securities. As a result, the price of XRP surged by 72%, but a slight decline has been observed in recent days.
The Ripple vs. SEC case became a significant event demonstrating the importance of the token holder community in legal disputes within the cryptocurrency industry. The support from the XRP Army proved to be a critical factor leading to a favorable outcome in the case.
