Ripple's momentous win against the SEC this week is cause for celebration throughout the crypto community. This is big, since not only did it immediately boost XRP's price and reputation, but it also sets an important legal precedent that should give hope to other projects facing similar regulatory challenges, like Coinbase.
In simple terms, Judge Analisa Nadine Torres's ruling that XRP is "not a security on its face" means that the simple act of creating and selling a cryptocurrency token doesn't automatically make it a regulated security. The SEC will have to provide more detailed analysis on a case-by-case basis to prove that a token actually functions as an investment contract.
Prior to this ruling, there was a lot of uncertainty in the crypto space about where the regulatory lines would be drawn. Many projects feared the SEC might just label any popular cryptocurrency a "security" and severely restrict its usage.
But now we know that's not the case. If a cryptocurrency truly functions as a blockchain-based payment network or application - like Ripple has long argued for XRP - it has a strong case for not being classified as a security.
This positive development is great news for many of the major cryptocurrencies like Bitcoin, Ethereum, Litecoin and others that have always seen themselves as decentralized networks, not "securities".
The ruling also gives projects like Polygon, Solana, Cardano and Tron more confidence to continue operating and innovating without fear that the SEC might come knocking at their door and suddenly label their tokens "securities".
Clearly, there's still a lot of work to be done in terms of actual crypto regulation. But Ripple's landmark victory helps move the industry in the right direction by providing much-needed legal clarity and shining a light on the path forward.
Crypto investors breathed a collective sigh of relief today as Ripple's win significantly reduces regulatory uncertainty, giving hope and optimism that the crypto revolution can march on unimpeded. It was truly an incredible event for the entire industry.
Veteran crypto investor Adam Cochran Twitted:
1/5
— Adam Cochran (adamscochran.eth) (@adamscochran) July 13, 2023
Ripple case, here is the good and the bad.
But it is mostly *VERY* good for all alts, and a surprisingly big win for XRP.
First Judge did decide institutional sales/fundraising was securities. pic.twitter.com/esmjcIrzN0
Jake Chervinsky, Chief Policy Officer at Blockchain Association, said the ruling a win for crypto exchanges:
Not legal advice, but my sense is US crypto exchanges should feel good about relisting XRP today.
— Jake Chervinsky (@jchervinsky) July 13, 2023
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