SEC Dealt Crypto Setback in Ripple Labs Ruling: Crypto in DC

A federal judge ruled that Ripple Labs Inc.’s XRP token is a security when sold to institutional investors but not the general public, a decision deemed a cryptocurrency victory over the Securities and Exchange Commission.

The SEC has launched a series of lawsuits against top crypto firms including Coinbase Global Inc. and Binance, accusing them of breaking securities laws by selling certain digital currencies. Crypto firms have argued SEC lacks jurisdiction, and the courts were expected to set major precedents as Congress struggles with digital-assets legislaton.

“The court’s July 13 ruling is a solid win for ...