Ripple vs. SEC: A Partial Victory For Ripple That The SEC Is Not Happy With
Ripple's co-founder said the SEC has failed to achieve its key objectives and is preparing for a second court hearing, even though Ripple secured a partial victory.
The court ruled that Ripple's native coin, XRP, is not a security. Chris Larsen once again underlined that the case and its outcome are significant for his company and the entire cryptocurrency space.
Commenting on the court's decision, Larsen added that the SEC lost on issues important to it. And despite the fact that the regulator has the right to appeal the decision, Larsen believes that there has been a breakthrough in the crypto industry.
Meanwhile, attorney and XRP supporter John Deaton noted that the results had a negative impact on the token despite the positive outcome of the case. He believes that the regulator has caused huge damage to XRP.
The damage to #XRP’s adoption in the United States is very significant. As you can see, @coinbase supported and promoted 2 tokens for cross border payments: #USDC & #XRP.— John E Deaton (@JohnEDeaton1) September 7, 2023
Because the SEC was claiming #XRP was a security, including secondary market sales, independent of Ripple,… https://t.co/Mcqcl5P9VB pic.twitter.com/qnwfrCvT60
The legal battle between Ripple and the SEC began in 2020, when the regulator accused the company of selling an unregistered security in the form of the XRP token. The entire cryptocurrency space was keeping an eye on the case, as its outcome could affect how cryptocurrencies will be regulated in the US.
Ripple's partial victory means that other exchanges can start trading cryptocurrencies as well, as such transactions are not securities transactions.
The Ripple case has also become a precedent for similar conflicts between companies and regulators. Thus, cryptocurrency company LBRY decided to appeal the decision of the New Hampshire court. The court accused the company of selling unregistered securities. And LBRY initially announced its shutdown. But Ripple's partial victory seems to have raised hopes.