Crypto Industry's Win: Ripple Triumphs in SEC Lawsuit
In a historic ruling on July 13, the court declared that XRP, the crypto token associated with Ripple, is not a security in and of itself. This decision is not only significant for Ripple but also for the entire U.S. crypto industry. The case revolved around the question of whether XRP could be considered an investment contract and thus classified as a security under the law. The court firmly rejected the SEC's argument that all crypto tokens are securities.
Ripple's CEO, Brad Garlinghouse, expressed that this ruling
marks a turning point in the SEC's regulation by enforcement agenda. He hopes
it will prompt Congress to establish clear rules for the crypto industry in the
U.S. The court clarified that Ripple's XRP sales on exchanges, sales by Ripple
executives, and distributions to developers, charities, and employees are not
securities.
Ripple's Chief Legal Officer, Stu Alderoty, highlighted the
significance of the court's distinction between the token itself and the manner
in which it was sold. This ruling sets a precedent that could be used by others
targeted by the SEC, affecting how digital tokens are classified in the country
going forward.
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