The recent victory of XRP against the SEC is a major win for the crypto community. The court’s ruling that XRP is not a security could have far-reaching implications for the regulation of cryptocurrencies.
Charles Hoskinson, the founder of Cardano, called the ruling a “small step for the XRP Nation, but a giant leap for crypto.” He pointed out that the ruling could help to clarify the regulatory status of other cryptocurrencies, and could make it easier for exchanges to list them.
Well done XRP. One Small step for XRP Nation, one Giant leap for Cryptocurrencies! pic.twitter.com/WmuIg8Ccc6
— Charles Hoskinson (@IOHK_Charles) July 13, 2023
Read Also: Cardano Founder Insists XRP Community is Manipulating His Remark about Ripple-SEC Lawsuit
Hoskinson’s comment has been received with skepticism by the XRP community due to the fracas between the duo in the middle of the lawsuit.
It can be recalled that Hoskinson had once referred to the XRP community members as conspiracy theorists. However, the latest development has brought everyone together, as it’s seen as a victory for the whole crypto ecosystem.
Is the Lawsuit Over?
Ripple CEO Brad Garlinghouse said that the ruling “solidified XRP’s position in law” and that it was “a matter that is settled and not subject to further trial.”
The SEC has responded to the ruling, saying that it is “satisfied with certain aspects of the decision.” However, the SEC also said that it “disagrees with the court’s conclusion that the Howey test is not the exclusive test for determining whether a digital asset is a security.”
The ruling only applies to the specific sales of XRP that were challenged by the SEC. It is possible that the SEC could bring a new case against Ripple, alleging that other sales of XRP were securities.
The ruling does not mean that all cryptocurrencies are not securities. The Howey test is still the most important test for determining whether a digital asset is a security. However, the ruling does suggest that the Howey test is not the only test that should be used.
A Potential Appeal?
The SEC has not yet made a decision about whether to appeal the ruling. However, the SEC has a history of appealing rulings that it disagrees with, so it is possible that the SEC will appeal this ruling as well.
The outcome of the appeal could have a significant impact on the regulation of cryptocurrencies in the United States. If the SEC is successful in appealing the ruling, it could make it more difficult for other cryptocurrencies to be classified as non-securities.
In the meantime, the ruling has had a positive impact on the price of XRP. The digital asset has surged in value since the ruling and is currently trading at around $0.80 per token.
The SEC’s appeal is likely to be a lengthy process if they do appeal. However, the XRP victory is a major win for the crypto industry, and it is a significant step forward in the fight for regulatory clarity for cryptocurrencies.
We will continue to monitor this case and provide updates as they become available.
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