The legal dispute between XRP and the SEC saw a major ruling yesterday, and the news has sent shockwaves through the cryptocurrency industry. Ripple has achieved a partial victory in the dispute, which is a huge milestone for them.

The court's ruling will only consider past sales of XRP directly to institutional clients as securities, which means Ripple is limited in this regard. Ripple Chief Legal Officer Stuart Alderoty emphasized the importance of the court's findings and said: "The court found that the only thing that constituted an investment contract was the past direct sales of XRP to institutional clients." Did everyone understand this ruling? It was just a short-lived victory, an emotional surge.

What’s next for Ripple?

Before we celebrate, we should not be too optimistic. Despite the ruling, the battle is far from over. There will certainly be appeals, as the regulatory framework around cryptocurrencies will need to be re-evaluated.

Legislative action is necessary, and the court’s decision not only raises debate about policy, but also questions about whether Ripple is fully satisfied with the outcome of the ruling. Judge Torres ruled that Ripple had been given fair notice. “Whether there is a jury to decide whether Ripple executives aided and abetted this unregistered offering is a question that needs to be considered,” he added.

While Ripple may have won this round, we should be cautious about potential appeals. Keep in mind that the order in the Ripple case was a partial summary judgment issued by the district court judge. While persuasive, it is not binding on other courts and may be subject to appeal and potentially overturned.

If the SEC does not immediately appeal to the Second Circuit, which I don’t think is likely, even if Ripple wins this ruling, they may not be completely satisfied with the outcome.

Chief Legal Officer Alderoty stated: “Further legal proceedings regarding XRP sales by these institutions will be pursued in accordance with the court order.”

The District Court determined that Ripple’s sales of XRP to institutional investors did constitute illegal securities sales. Ripple received nearly $770 million from these sales, which they may be required to return/disgorge. Plus penalties/fines.

Impacts beyond XRP

As the dust settles on the ruling, its impact will not only be limited to Ripple and XRP, but will also extend to other areas.

The Ethereum Foundation and other projects may still face difficulties. This may only be a short-lived victory. I think the judge made a legal error. Even if she hadn't ruled that way, many projects would still be at risk.

Yesterday, Ripple’s partial victory pushed XRP price to the 38.2% Fibonacci retracement level on the 1-week chart. As of writing, XRP is trading at $0.77, up 68% since the ruling. Holding the 23.6% Fibonacci level around $0.69 could be a focus for bulls.