Ripple CEO Brad Garlinghouse announced the positive consequences of the court’s decision, which concerns the token of this company.
Last week, during a conversation with reporters, Brad Garlinghouse said that following the decision of U.S. District Judge Analisa Torres
XRP Ripple is no longer a security, which is assessed by the firm as a positive result since in this case, the space of the company’s capabilities for finding a new business is expanding. Also, the court ruling means that the CEO has fewer worries because he no longer needs to worry about promoting the brand’s technological solutions and their use cases.
Attention should be paid to the fact that the text of the court decision contains information that XRP does not belong to the category of securities in the case of sales to the general public, but retains this status in the commercial interaction of the company with institutional investors. This ruling is a kind of victory for the cryptocurrency industry over the U.S. Securities and Exchange Commission, which filed a lawsuit against Ripple three years ago.
Brad Garlinghouse stated that many representatives of the crypto sector took the court’s decision with enthusiasm and a certain excitement. This emotional response, according to him, is because the first case of the SEC’s loss was recorded as part of the proceedings with a representative of the cryptocurrency industry. Also, the CEO of Ripple described the actions of the regulator against the company as a hooligan.
Arthur G. Jakoby, co-chairman of the securities litigation and enforcement department at Herrick Feinstein, said that the court’s decision, in this case, is a huge victory for the cryptocurrency sector and the digital asset industry as a whole. He also noted that supporting this decision on appeal would mean a significant reduction in the space of the SEC’s capabilities in terms of influencing the cryptocurrency market.
The media reported that on the eve of the final court ruling in the Ripple case, the crypto sector froze in anticipation. Such close attention is quite understandable by the fact that in this case the conceptually and fundamentally important question of whether digital assets are securities was solved.
The decision in the Ripple case, according to experts, will not become an obstacle to cryptocurrency transactions, which, according to some statements, are committed fraudulently and using market manipulation tactics. At the same time, the ruling is a legal precedent for firms issuing token securities in violation of the requirements stipulated for this activity, and may potentially refute some SEC statements.
At the same time, an important circumstance is that the outcome of the trial concerns only the Ripple token and does not apply to the entire sphere of digital assets.
Coinbase Global announced that it will return XRP on its crypto exchange after the suspension of token trading in January 2021 due to the actions of the SEC.
According to some experts, the court’s decision could potentially become a pretext for the creation of legislative acts in the United States that define the status of virtual assets.
As we have reported earlier, Ripple Rolls Out CBDC Platform.