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# Decoding Ripple’s Partial Win Against SEC with Lingering Uncertainties
- URL: https://www.metatalks.ai/decoding-ripples-partial-win-against-sec-with-lingering-uncertainties/
- Published: 2023-07-17T10:38:18.000Z
- Updated: 2023-07-17T10:38:18.000Z
- Author: Katelyn Chow
- Tags: ripple, xrp, SEC, lawsuit, crypto, cryptocurrency, regulation

[#Ripple](https://twitter.com/hashtag/Ripple?ref=metatalks.ai) appeared to score [a major win](https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security?ref=metatalks.ai) against SEC in court. On closer consideration, however, [it turns out](https://www.bloomberg.com/news/newsletters/2023-07-13/what-does-ripple-xrp-ruling-in-sec-case-mean-for-crypto?ref=metatalks.ai) to be partial at most, and the decision left a lot of room for ambiguity. So [what actually happened](https://www.katherinewu.me/writings/2023/7/13/sec-v-ripple-is-xrp-a-security?ref=metatalks.ai) there if you want something more than headline takes…

![](https://lh3.googleusercontent.com/lV3Cqa3ipPI3mbAhSnvUrWsp0k5HxNgvk0XmkMp9AKHTTpPEW-eSB79JCfi3hKqYVmNk91jAWDj0xZ2yfNl7k53XMsgiMaubBNkDSCAzqP2kbRO2jBFKLGRZDgEXugDzYWe4Htu5o9JY9J4KsMJ5SSoUBMIiy49K)

![](https://lh6.googleusercontent.com/cMaqrFKfdLYpPLtHQBNT2aJqYcrDZ8wxvoVlSpRKaFOT7jhmsu4Je9-6DDzIkF6pIETILTdYK4IKjn89LICDg8Fp7AG0DIQS_84xA0znCosMelL6TJqSXCfyFo_pVp_TyqicOb7-AaaT-s_D0952WXMt3f95fXk5)

*(*[*What campaign is he talking about*](https://www.coindesk.com/tech/2022/03/29/bitcoiners-scoff-at-chris-larsens-5m-campaign-to-force-a-btc-code-change/?ref=metatalks.ai)*)*

![](https://lh5.googleusercontent.com/bewJasxQWlspHAKl4V9CQfgCQ7pTv1hBLCDFPeO39AtQ4mASXEmMtMp3CBriCZOmd-xLCU33K9V25jscFxPoyiP7UQWzSQtSv_57jL3krXiBB32OKU-q-eKaRDG4ToYrPK60xQv4KcFYt2KZDjTGGEOlMFDwRhtT)

To begin with, [the court ruling](https://www.courtlistener.com/docket/19857399/874/securities-and-exchange-commission-v-ripple-labs-inc/?ref=metatalks.ai) states that Ripple *illegally sold* $728 million worth of *unregistered securities* via institutional sales of XRP ([what’s this](https://decrypt.co/resources/ripple?ref=metatalks.ai), by the way), and its co-founders should stand trial for that violations.

![](https://lh4.googleusercontent.com/wiTqqUJQvRBT03gJ16HrqlC97BMy4P4L6UOto8KdFylwlnwKoqFtWpMz543gOcpW1kW3XoTNnupzxLQfTaz_6hzsyl6v20kAaqx6CXx-kvHtdTHU5Lty0-PiQA9Qv9K1FvfvtrEH-xr7X3zHhDDJ8xlZlLJVwe7D)

*(*[*Thread*](https://twitter.com/RosenfeldM/status/1679543423798222867?ref=metatalks.ai)*)*

However, the ruling stated also that Ripple *did not* illegally offer $757 million worth of unregistered securities through programmatic sales of XRP \[on exchanges to retail buyers\] (so [exchanges relist XRP](https://news.bitcoin.com/coinbase-other-crypto-exchanges-relist-xrp-following-ruling-in-sec-v-ripple-case/?ref=metatalks.ai) already). Nor, according to this court decision, Ripple *did not* unlawfully offer other distributions of $609 million worth of XRP, such as bonuses and workers’ compensation.

![](https://lh5.googleusercontent.com/Ng4QLnawf_vv096pvzYn-bebgASRWxeF6V2baDnjzkXR3ppF7mH3oglP7RNPjL191b3K5cW2300vzaCKoytG1bpdQUd-UardzrR4EF2Fxs4wpRtHR39hw4vv-YM5HNRMpLsouXnRL9mSF5YL2Hs9XjHhNVRHsrdW)

So it’s a split decision, [based primarily](https://www.katherinewu.me/writings/2023/7/13/sec-v-ripple-is-xrp-a-security?ref=metatalks.ai) on how and to whom the tokens were distributed. The [judge basically ruled](https://protos.com/crypto-twitter-misinterpreted-everything-in-sec-v-ripple/?ref=metatalks.ai) that institutional sales of XRP were illegal but that programmatic sales and other distributions were not.

So while crypto may be celebrating with [prices soaring](https://twitter.com/chainalysis/status/1679959789202296832?ref=metatalks.ai) across the board, [there are enough uncertainties](https://www.bloomberg.com/news/newsletters/2023-07-13/what-does-ripple-xrp-ruling-in-sec-case-mean-for-crypto?ref=metatalks.ai) to leave the sector with a cause for concern.

![](https://lh5.googleusercontent.com/5ZG2LXnAigaUnkf3ZFZ82ozKjDCWMD9OzeREHNFMH5VsPcdhRx97lDkpajYSOUE4_CnX7oFiqvKTrs3lXFju4jrx-SGWkj1ZbRAK766stpV4d3j4E_BZB3YbzKbDxeISt7iyUjhVvSvaoUmMEbZKixcDOa3-JXf8)

![](https://lh3.googleusercontent.com/PXdct6w_1aDTGQC611B-TXYucbevkovzIpPAmkDDtqC19gp3pHnczqfmBWhVB_6xGfgvIoYJ5VNbGf4t3qXeZfO8hWH4l0MbHIiHW7pIW2355BQSc6SCcLqYblGx3IbwVwQ4A3_fX8vqUl2CfXQBdrMMmnMJLXkP)

[Here](https://www.katherinewu.me/writings/2023/7/13/sec-v-ripple-is-xrp-a-security?ref=metatalks.ai) you can find an excellent overview of that Court Decision – a highly recommended reading for those interested, thanks to [@katherineykwu](https://twitter.com/katherineykwu?ref=metatalks.ai).

However, the motivation behind the decision also warrants attention. The judge effectively rejected the arguments on which Ripple’s defense was based:

![](https://lh6.googleusercontent.com/Ol1DmflLTWR14OsQa15loc0EJjDOkh2qYw-KR_7gkoZSkNinBAVFztWBVS4N-JqKty6lq0aTOncUS-UqtOEQtQhZbs6ACpTJucxaf-lvxbcf56h9vDg9L7kyvwdYypuWpgBlMAY3anvHgBL9QCFxUjLqq_KOxITH)

SEC says it leaves [the door open for appeal](https://www.theblock.co/post/239537/sec-leaves-door-open-for-appeal-in-ripple-case?ref=metatalks.ai), but it can take a long time anyway. On appeal from either party, the trial will likely continue for another year or two. If the case reaches the Supreme Court, a final ruling could take many, many years.

![](https://lh6.googleusercontent.com/ZW5MUixJtneIHePOmyJdIKcFMorbmdfJoVtSGGzio3bliAOMW8U7ZoRXP_dK_ajTM-UzB1YsO8XKM_OemWdq6iUFEphRcB8wgbyw73YU9gWykExtBhPZxvg5HFFMYwCS39sDoSlNqUBwulXWvLmipIBXaR8ifdkW)

![](https://lh3.googleusercontent.com/0mdFAAnXb2KuOH_861wOmJ44vTNNJgaRoNuD28qyIv4G1ZfuNtdwKD3o2i4Kj9xCFP6mZGzmGKTUWKf2PhbXhP0O5KnuE56BDx6iznNF_5F0lVBRJ70eKjUhyd1G3SRo29cNyQLyGcIYpEyr4ltgY3_lviPeScXS)