Ripple’s digital currency, XRP, was declared not a security in a ground-shaking decision that has sent bureaucrats and crypto-fans alike into a debate. Not all are happy with this ruling.
SEC Officials at Conflict
John Deaton, lawyer and founder of CryptoLawUS, recently took to Twitter with some interesting insights. He tells us there’s a rift within the SEC. They can’t decide whether to take a swing at this ruling or to just let it be.
“Some say don’t appeal,” Deaton reports. “Let the SEC argue ‘facts and circumstances’ and that XRP is a unique story, not shared by other tokens.” But if they appeal and lose? Well, then we’re not just talking about Ripple. We’re talking about a domino effect that could hit every other jurisdiction. And that’s big.
On the other hand, there are those arguing to appeal, because the Torres decision could be massively influential on Torres’ fellow judges, even if it’s not binding.
Ripple Ripples Through the Crypto Market
The ruling on XRP has indeed created ripples in the crypto community, potentially charting the course for the future of cryptocurrency regulation. The main takeaway, as pointed out by Tony from the ThinkingCrypto podcast, is the clarification it provides on how tokens are sold on the secondary markets. This ruling might serve as a stepping stone for Congress members aiming to push crypto-related bills forward.
https://youtube.com/watch?v=ZO9YtFRTCp0%3Ffeature%3Doembed
But the question remains “Does the SEC just kind of accept that ruling around XRP as a security and let it lie or do they really want to push the envelope and open up what would be a much broader potential ruling against them for a lot of other similar sorts of tokens or assets?”
Also Read – XRP News: Expert Says Having Just 500 XRP Can Make You a Millionaire – Here’s How?
The XRP Ruling: A Case Apart?
While the ruling is viewed as a significant win for Ripple, the question remains whether it applies to other cryptocurrencies. In future negotiations, the SEC may argue that the XRP situation was unique and doesn’t necessarily set a precedent for the rest of the industry.
In the face of this uncertainty, one thing is clear: the ruling marks a significant victory for Ripple and the crypto industry. The recognition of XRP as a non-security could narrow the gap between the US and other jurisdictions, making the US a more attractive hub for the burgeoning crypto market.
Regardless of the answer, Ripple and its CEO Brad Garlinghouse deserve a tip of the hat. They fought the SEC and won, paving the way for the crypto industry. But whether this is a single ripple or the start of a sea change, only time will tell.
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