Ripple has clarified some widespread misconceptions about the recent court ruling that declared XRP as a non-security asset. The company said that the ruling was a “resounding win” and that it paves the way for other digital tokens to obtain a similar classification.
In the recently released Q2 2023 XRP markets report, Ripple corrected the notion that the decision was a partial victory. The company said that the court “vindicated” its position that XRP is not a security and that the ruling was not a compromise.
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The company also said XRP is never a security, as it was not sold with promises associated with future gains. Ripple explained that the Howey test, which is the legal test for determining whether an asset is a security, does not require that an asset be sold with promises of future profits.
Ripple also clarified that the ruling does not prioritize sophisticated institutions over retail buyers. The company said that the court was simply delineating the SEC’s jurisdiction and that the ruling does not mean that the SEC will not be able to protect retail buyers in the future. The SEC can still bring enforcement actions against companies that sell digital tokens to retail investors if those tokens are securities.
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Finally, Ripple addressed the misconception that the ruling impedes its ability to do business. The company said that the vast majority of its customers and counterparties are outside the United States and that it will continue to work with non-US partners in clear regulatory environments.
Since XRP is already listed on several major exchanges outside the United States, it is likely that the company will continue to expand its operations in these markets.
Read Also: Legal Analyst: If Ripple and XRP Lost the SEC Case, Anti-Crypto Army Would Be “Out in Full Force”
In addition to clarifying these misconceptions, Ripple shared data about its XRP holdings for Q2 2023. As of June 30, 2023, Ripple held a total of 5,551,119,094 XRP, with an additional 41,900,000,005 XRP subject to the on-ledger escrow.
The company has been gradually selling its XRP holdings over the past few years, and it is likely that it will continue to do so in the future.
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