XRP Is Not Security: Ripple CLO Celebrates ‘Huge Win’ Over SEC

As a long-term crypto investor and observer of the industry, I cannot help but feel a sense of relief and validation following the one-year anniversary of the groundbreaking ruling by Judge Torres that XRP is not classified as a security. This decision has significant implications for Ripple and the wider crypto community, providing much-needed clarity on the regulatory landscape.


Exactly one year ago today, Judge Torres made a significant decision declaring, in part, that XRP does not fall under the classification of a security. This landmark ruling held importance for Ripple as well as the broader realm of crypto regulation.

Today marked a significant legal victory for XRP: it was ruled that, in accordance with the law, XRP is not classified as a security. Furthermore, transactions involving XRP on exchanges, as well as sales made by executives and other distributions to developers, charities, and employees, are also considered legally distinct from securities.— Stuart Alderoty (@s_alderoty) July 13, 2023

As a legal analyst, I’d like to share my perspective on the implications of the recent court ruling, following Ripple’s Chief Legal Officer Stuart Alderoty’s reflection on this important date.

“Gross overreach”

As a researcher studying the regulatory landscape of cryptocurrency exchanges, I can’t help but note that Alderoty’s assessment of the recent Coinbase lawsuit holds significant implications for the U.S. Securities and Exchange Commission (SEC) as a whole. For instance, the ongoing case with Binance represents another instance of what some critics view as overzealous regulation under Chair Gensler’s tenure.

Instead, he pointed out that handling the disputes over tokens on an individual basis via lengthy lawsuits isn’t a practical approach for the future.

Alderoty highlighted the mounting disappointment among politicians from all sides of the aisle regarding the slow advancement of cryptocurrency regulations in the United States. He issued a cautionary note, expressing concern that our country may be losing ground to other nations in this area.

Ripple v. SEC ending

Over the past nearly four years, Ripple has found itself embroiled in a legal dispute with the Securities and Exchange Commission (SEC). The SEC has claimed that Ripple illegally sold the digital asset XRP as an unregistered security. The resolution of this high-stakes case could carry substantial implications for the entire cryptocurrency sector.

As a analyst, I cannot definitively state when the long-awaited verdict will be handed down. However, there are rumors circulating that it could potentially occur towards the end of July.

In April, Ripple made known its objection to the SEC’s request for penalties. Ripple maintains that any monetary penalty imposed on them should not surpass $10 million, while the SEC had earlier advocated for a significantly larger penalty amounting to $2 billion.

Read More

2024-07-13 14:15