The judgment came almost three years after the SEC first filed its complaint.
As a consequence of the ruling, XRP has been relisted on major crypto exchanges.
After Ripple’s major legal triumph, CEO Brad Garlinghouse turned to Twitter to express his appreciation for the team and the result. According to Garlinghouse, this judgment is an “unequivocal win for Ripple and for crypto in the US.” Suggesting that it may have far-reaching effects on the whole cryptocurrency industry.
A momentous milestone for Ripple and the broader U.S. crypto sector, the judgment came almost three years after the Securities and Exchange Commission (SEC) first filed its complaint.
Major Influence on Upcoming Regulations
A security title would have exposed Ripple’s digital token, XRP, to more regulatory scrutiny. But the court’s ruling on July 13 was definitive in its finding that XRP is not a security. In addition to clearing Ripple of the SEC’s accusations, this landmark decision will undoubtedly influence how the rest of the United States governs cryptocurrencies.
This groundbreaking victory against the SEC has the potential to affect how other cryptocurrencies are classified. Therefore reducing the likelihood of future regulatory conflicts. This triumph might mark a watershed moment in the country’s evolving perspective and approach to regulating cryptocurrencies.
Moreover, after SEC Chairman Gary Gensler was criticized by Ripple’s chief legal officer Stuart Alderoty for allegedly misinterpreting the law and the Howey Test, Garlinghouse chimed in with his own criticisms. The latter is the Supreme Court’s own standard for identifying whether transactions are true “investment contracts.”
After Ripple’s partial triumph over the SEC, XRP, the company’s native cryptocurrency, saw a meteoric rise in value. As a consequence of this successful legal battle. XRP has been relisted on major cryptocurrency exchanges, leading to an increase in both demand and trading volume.