Ripple XRP is...NOT a security!!!

TL;DR

• ​News broke yesterday that Ripple (XRP) won its lawsuit against the SEC - proving in court that the XRP token is not a security when being sold to the public.

• Though the judge did rule that when XRP was being sold to institutions - it did, in fact, fit the description of a security...

• This means crypto projects will think twice before selling most of their initial token supply to big institutional investors before they go live to the public (which is a good thing).

• This new legal precedent means tokens that function in a similar way to XRP will likely be able to get the same ruling if/when the SEC tries to sue them.

Full Story

You know those scenes from Maury and Jerry Springer, where one of the guests would be told:

"You...are...NOT the father!"

(At which point they'd go on a rabid and frenzied victory lap around the studio?)

Yeah, well - that's exactly what folks in the crypto space are doing right now.

As of ~10 mins before this writing, news broke that Ripple (XRP) won its lawsuit against the SEC - proving in court that the XRP token is:

"...NOT a security!" (security = a stock).

Meaning the XRP token won't be under the purview of the SEC (which would cripple it).

But there is a caveat.

XRP was not found to be a security when it was being sold to the public...

But the judge ruled that when XRP was being sold to institutions - it did, in fact, fit the description of a security...

Which (weirdly enough) is great for retail investors!

This means crypto projects will think twice before selling most of their initial token supply to big institutional investors before they go live to the public.

Which should help prevent single entities being able to buy-in super cheap, then dump all of their holdings (and tank the price) once a token is publicly available.

Either way you slice it - it's good news!

And the token's price is already on a tear! It jumped about 25% in fifteen minutes:

Which is great for Ripple, but...

Why is the rest of the crypto space taking a victory lap?

Two beautiful words: Legal. Precedent.

You know that classic argument you used to pull on your parents? The one that went something like:

"Timmy's parents let him stay up past 9pm, so I should be allowed to as well."

Sure, it never really worked when feuding with your mom - but in court, that kind of argument actually holds up!

By law, XRP is NOT a security when being sold to the public.

Which means any other tokens that function in a similar way to XRP (which is a good chunk of them) will likely be able to get the same ruling if/when the SEC tries to sue them.

Cause if the courts do it for one token, legal precedent says they have to do it for others that operate in the same way.

If anyone needs us, we'll be in our apartment recreating the dance from today's gif (☝️) and fielding complaints from our downstairs neighbors.