Cardano founder, Charles Hoskinson, has publicly commended the recent victory achieved by XRP against the United States regulator. In a tweet, he hailed the outcome as a significant step forward for not only the XRP community but for the entire cryptocurrency industry as a whole. Hoskinson emphasized the importance of understanding the court’s distinction between XRP as a digital token and any contractual, transactional, or scheme falling under investment contract regulations.
The court ruling, as shared by the Cardano founder, highlighted the need to consider the totality of circumstances surrounding various transactions and schemes involving the sale and distribution of XRP. It referenced the Marine Bank versus Weaver case as a guide for assessing such situations. This precedent-setting ruling has significant implications for the regulatory clarity surrounding digital assets.
Ripple CEO, Brad Garlinghouse, echoed Hoskinson’s sentiments, emphasizing the court’s recognition of XRP’s status as a non-contractual, non-transactional, and non-scheme-based digital token. Garlinghouse expressed his belief that this decision solidified XRP’s legal position, stating that the matter is now settled and not subject to further trial.
While Ripple considers the ruling to be a resounding victory, the Securities and Exchange Commission (SEC) has responded by acknowledging certain aspects of the court’s decision. The SEC conceded that XRP tokens were indeed offered and sold by Ripple as investment contracts, thereby violating securities laws in specific circumstances. It is worth noting that the SEC’s reference to sales made to institutional investors signifies their focus on specific segments of the market.
In response, Stuart Alderoty, the Ripple Chief Legal Officer, strongly criticized the SEC’s stance, describing it as pathetic. He urged the regulatory agency to concede defeat, as the court ruling significantly favors Ripple’s perspective. The ongoing battle between Ripple and the SEC has garnered significant attention within the crypto community, and this recent victory reverberates throughout the industry.
The implications of the XRP victory are far-reaching, as many now believe it sets a solid precedent for the treatment of digital assets under U.S. securities laws. This legal clarity has led several U.S. exchanges to relist XRP, resulting in a surge in its price within the last 24 hours. Investors and enthusiasts within the crypto community are closely following these developments, eagerly awaiting further progress in the regulatory landscape.
Overall, the XRP victory represents a significant milestone for the crypto industry, as it brings newfound clarity and recognition for digital tokens. With multiple stakeholders weighing in on the court ruling, it is evident that the implications of this decision will continue to shape the future regulatory landscape for cryptocurrencies.