A US federal judge has ruled partially in favor of Ripple Labs in the Securities and Exchange Commission (SEC) lawsuit against the company. The judge’s decision states that Ripple did issue an unregistered security offering with its XRP token, but only in the case of institutional sales. The ruling could set a precedent for future token classification cases. The judge also rejected Ripple’s argument that a physical contract must exist for it to be considered an investment contract. The SEC has charged other firms, including Tron Network, Kraken, Nexo, and BlockFi, since suing Ripple. The ruling may have implications for these cases as well.

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