By Mauro Wolfe, Vincent Nolan and Angela Benoit
On July 13, 2023, the U.S. District Court for the Southern District of New York granted partial summary judgment in favor of Ripple Labs Inc. (Ripple), holding that the company did not violate the Securities Act by selling its XRP token on public exchanges.
Despite this partial win, the Court also held that Ripple’s sale of the XRP tokens to sophisticated individuals and entities including hedge funds and institutional investors did constitute an unregistered securities offering.