• Ripple’s XRP token has been ruled as not a security when sold on digital asset exchanges.
• The ruling marks a milestone for the entire crypto industry, but further court proceedings and appeals can still be expected.
• Ripple hopes Congress will use the ruling to create a clear regulatory framework moving forward.
Ripple’s Partial Victory Against SEC
Ripple recently experienced a partial victory against the U.S Securities and Exchange Commission (SEC) when its XRP token was ruled as not being considered a security when sold on digital asset exchanges. This ruling has caused positive sentiment across the cryptocurrency ecosystem with Ripple’s Chief Legal Officer Stuart Alderoty noting that the court’s ruling can now also be used by others in the SEC’s crosshairs.
Uncertainty Without Regulatory Framework
Although this recent court ruling is seen as positive, crypto firms still face uncertainty without a regulatory framework in place. In order to overcome this, Ripple hopes that Congress will use the ruling to create clear regulations moving forward so that other crypto firms are aware of their obligations and restrictions under existing law.
Possible Appeal From SEC
The SEC has the ability to appeal this ruling once it becomes final, which Lewis Cohen from DLx Law noted could reverse it and allow them to bring similar actions in other federal districts seeking alternative outcomes.
Longer Term Impact On Crypto Industry
It is expected that this recent court case could have long-term implications for the entire crypto industry in terms of providing clarity for future cases and ongoing regulations. The importance of having these clear regulations is highlighted by Brad Garlinghouse, CEO of Ripple who said “We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history”.
The recent court case between Ripple and SEC has marked an important milestone for both parties involved as well as providing some clarity for future cases related to crypto regulation throughout North America. Despite there being further proceedings ahead, it is hoped that Congress will use this ruling to create clearer regulations moving forward so that all stakeholders within the industry are able to understand their legal obligations clearly going forward.