The Southern District Court of New York has ruled that programmatic sales and other distributions of Ripple's XRP token do not constitute an offering or the implementation of investment contracts.
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Judge Analisa Torres has ruled in Ripple's favor in a proceeding that has been ongoing since 2020. The complaint filed by the SEC alleged that, for seven years, Ripple sold unregistered securities in the form of XRP tokens to retail investors.
However, it is worth noting that according to the judge's decision, the sale of coins to large industry players violated US securities laws.
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Ripple CEO Brad Garlinghouse has expressed optimism about the future of the industry in the US.
He has written:
"We said in Dec. 2020 that we were on the right side of the law, and will be on the right side of history."
It is worth noting that the price of XRP has reacted positively to the news, becoming the fourth largest crypto in the market by market capitalization.