Ripple announced a Sept. 29 party in New York to celebrate a recent legal win when its native token XRP was considered not a security.
In an Aug. 28 tweet, Ripple announced the party.
In a separate thread, the firm’s CEO, Brad Garlinghouse, noted it is “time for that proper victory party.”
The last few years have been quite the journey and I look forward to sharing a celebratory toast on Sept 29 in NYC!
Brad Garlinghouse, Ripple CEO
The announcement came after Ripple Labs recently won its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). The ruling in question found that XRP is not an unregistered security, except when it is used to raise funds from institutions.
Furthermore, some are speculating that the rest of the prosecution objectives are not faring well after three SEC attorneys left the case last week. Still, some experts argue that attorneys leaving a case has no real implications for how it is faring.
Ripple vs. SEC
The SEC has filed a lawsuit against Ripple Labs Inc., the digital asset firm behind the cryptocurrency XRP. The SEC claims that Ripple’s sale of XRP constitutes a violation of federal securities laws. The lawsuit alleges explicitly that XRP is not a currency but an investment contract that gives its holders a stake in Ripple’s future profits and success.
According to the SEC, Ripple misled investors about the status and utility of XRP and manipulated the market by selectively disclosing information and paying incentives to third parties. The agency argues that XRP should be classified as a security, subject to the regulations and oversight that come with that classification.
On the other hand, Ripple denies these allegations and contends that XRP is not a security but a decentralized cryptocurrency with utility and value beyond Ripple’s control. The company argues that the SEC’s lawsuit is based on a flawed and outdated interpretation of the law and hampers innovation and development in the crypto industry.
Ripple’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen, were named as defendants. Both parties have been actively defending themselves against the SEC’s claims.
