The suit was reviewed by the district court in the Southern District of New York over the next several years. The court mostly sided with the Ripple Labs group, finding that the XRP cryptocurrency had more in common with national currencies than with security contracts.
The ruling rested on the Howey Test, noting that XRP has a vital purpose in the RippleNet international payments system, with a purely functional role and no expectation of investment profits. But the judge's analysis might only apply to people using RippleNet and XRP for their intended purpose, while "sophisticated investors" still may treat the token as a profit-building security over time.
The lawsuit and its appeals are still under review as of January 2025. The final verdict could be of profound importance for long-term cryptocurrency investments in America and around the world. The legal rulebook is being written right now.