In a ruling that has set the cryptocurrency market abuzz, a federal judge in New York determined that the XRP token "is not necessarily a security on its face." The decision drew reassurance to the sector that altcoins may not be classified as securities.

In the aftermath of a multifaceted ruling by a U.S. federal judge regarding the ongoing legal battle between Ripple Labs and the SEC that deemed XRP is “not necessarily a security on its face,” a number of cryptocurrency exchanges started relisting the token.

Celsius, the now-bankrupt crypto lender, and its former CEO, Alex Mashinsky, are facing a slew of federal charges, stemming from multiple U.S. agencies including the Department of Justice (DOJ), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC).

Top stories in the Crypto Roundup today:

• Judge Rules XRP Is ‘Not Necessarily a Security’ in Landmark Case
• Crypto Exchanges Relist XRP After Judge’s Ruling on SEC Case
• Celsius’s Former CEO Mashinsky Arrested for Fraud, SEC and CFTC Sue Crypto Lender
• Ethereum Tops CCData’s Crypto ESG Ranking

Judge Rules XRP Is ‘Not Necessarily a Security’ in Landmark Case

In a ruling that has set the cryptocurrency market abuzz, a federal judge in New York determined that the XRP token "is not necessarily a security on its face." The decision drew reassurance to the sector that altcoins may not be classified as securities.

As a result, the value of several other digital assets that had been named as securities by the U.S. Securities and Exchange Commission (SEC), including Polygon’s MATIC, Solana’s SOL, and Cardano’s ADA all saw their prices jump along with XRP itself.

The SEC sued Ripple back in 2020 for alleged violation of U.S. securities laws, arguing that the firm sold XRP without prior registration with the agency. Judge Analisa Torres has now ruled on the lawsuit, that XRP was a security when Ripple sold it to institutional investors years ago, but not to the public.

The judge’s main argument was that institutional investors who bought XRP from Ripple in the past probably knew it had some features of a security, while investors who got XRP from crypto exchanges didn’t have the same information.

Ripple’s Chief Legal Officer, Stuart Alderoty, said on social media the decision was a “huge win,” as sales on exchanges aren’t considered securities.

The SEC said in a statement the agency was reviewing the decision and was “pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances.”

Crypto Exchanges Relist XRP After Judge’s Ruling on SEC Case

In the aftermath of a multifaceted ruling by a U.S. federal judge regarding the ongoing legal battle between Ripple Labs and the SEC that deemed XRP is “not necessarily a security on its face,” a number of cryptocurrency exchanges started relisting the token.

Trading platforms including Crypto.com, Kraken, and Coinbase all announced that they are relisting XRP, in moves that come after a prolonged hiatus of XRP trading on many U.S. platforms after the SEC filed a lawsuit against Ripple Labs at the end of 2020.

Exchanges relisting XRP also include Gemini, which noted the ruling “that the sale of XRP on exchanges is not a security” will see Gemini explore the “listing of XRP for both spot and derivatives trading,”

Other cryptocurrency exchanges that delisted XRP, including OKX, weighed in on the pivotal court ruling but did not announce plans to resume trading of the token. Digital asset firm iTrustCapital claimed to be the first to reinstate XRP after a two-year hiatus.

Celsius’s Former CEO Mashinsky Arrested for Fraud, SEC and CFTC Sue Crypto Lender

Celsius, the now-bankrupt crypto lender, and its former CEO, Alex Mashinsky, are facing a slew of federal charges, stemming from multiple U.S. agencies including the Department of Justice (DOJ), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC).

Federal prosecutors have levelled fraud charges against Mashinsky, accusing him and others, including Celsius's Chief Revenue Officer Roni Cohen-Pavon, of executing "a scheme to inflate the price of Celsius's proprietary token, CEL."

Accusations also extend to the firm's promotional materials, which allegedly portrayed Celsius as a "modern-day bank,” when according to the DOJ Mashinsky ran Celsius more like a risky investment fund, inadvertently transforming customers into investors in a venture far riskier and less lucrative than implied

Both Mashinsky and Cohen-Pavon were taken into custody on Thursday. Simultaneously, the SEC has launched a lawsuit against the defunct crypto lender and co-founder Mashinsky for alleged securities fraud and other infractions

The SEC alleges that Celsius and Mashinsky dishonestly represented the company's fundamental business model and risk to investors, falsely claiming that Celsius did not engage in uncollateralized loans, risky trading, and that investor interest represented 80% of the company's revenue.

The regulatory body contends that these assertions were false, and crucial information was intentionally concealed from investors before Celsius formally declared bankruptcy in July 2022.

Additionally, the CFTC has initiated its own lawsuit, alleging that Mashinsky and Celsius deceived investors and pursued increasingly precarious investment strategies involving multi-million-dollar uncollateralized loans.

The FTC has also reached a settlement with Celsius, forbidding the firm and its affiliates from offering or advertising any service involving user assets.

Ethereum Tops CCData’s Crypto ESG Benchmark

Ethereum (ETH), the second-biggest cryptocurrency by market value, has ranked first in a new ESG rating for digital assets, followed by other smart contract platforms like Solana (SOL) and Cardano (ADA).

CCData’s ESG Benchmark report notes ESG criteria are becoming more important for institutional investors and funds, and that ESG-related assets under management could reach $33.9 trillion by 2026. The Benchmark was created to meet this increased demand from ESG-focused investors and to support the development of ESG indices and financial products.

The report gave Ethereum the only AA grade in the ESG Benchmark, while Solana, Cardano, Binance Coin (BNB), Aptos (APT), Polkadot ($DOT), DAI, XRP, and Tezos’ XTZ got an A grade.

Uniswap’s UNI, Cosmos (ATOM), Polygon (MATIC), and Algorand (ALGO) were among the digital assets that got a BB rating, along with $EOS.

State of the Crypto by Top Tier Exchange Volume

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