{"id":40593,"date":"2023-07-26T05:28:29","date_gmt":"2023-07-26T09:28:29","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-industry-celebrates-xrp-court-ruling-but-long-road-ahead-for-regulatory-framework\/"},"modified":"2023-07-26T05:28:31","modified_gmt":"2023-07-26T09:28:31","slug":"crypto-industry-celebrates-xrp-court-ruling-but-long-road-ahead-for-regulatory-framework","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40593","title":{"rendered":"Crypto Industry Celebrates XRP Court Ruling, but Long Road Ahead for Regulatory Framework"},"content":{"rendered":"
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The cryptocurrency industry has been abuzz with excitement\u00a0after a recent court ruling\u00a0declared that\u00a0Ripple<\/strong>‘s\u00a0XRP<\/strong>\u00a0token is not considered a security when sold on digital asset exchanges.\u00a0<\/p>\n

The ruling has generated positive sentiment across the crypto ecosystem, offering hope for clarity in the regulatory landscape.\u00a0<\/p>\n

Stuart Alderoty<\/strong>, chief legal officer at Ripple, has said that the most critical aspect of the ruling is the court’s explicit statement that XRP is not inherently a security, claiming that this ruling is now a matter of law, no longer up for debate or trial.\u00a0<\/p>\n

\u201cAdditionally, other findings that are not subject to trial include the following: sales on exchanges are not securities, sales by executives are not securities, and other XRP distributions to developers, charities and employees are not securities,” he\u00a0said in a recent interview.\u00a0<\/p>\n

Although the XRP court ruling is a significant milestone for the crypto industry, Alderoty said it is far from the end.\u00a0<\/p>\n

\u201cThere will be further court proceedings per the court\u2019s order, and we\u2019re evaluating next steps,\u201d he said.<\/p>\n

Recent Ruling Could Signal Some “Measures of Finality”<\/h2>\n

While many crypto pundits have rejoiced about Ripple\u2019s recent partial win, others noted that the industry\u2019s fight for regulatory clarity is likely far from over.<\/p>\n

Preston Byrne, partner at Brown Rudnick and a crypto entrepreneur, said the SEC is currently reviewing the decision, claiming that the agency might challenge the ruling.\u00a0<\/p>\n

\u201cThe Ripple summary judgment is obviously not the last word on the issue,\u201d Byrne said in a recent tweet, noting that even if Ripple accepts the win, the firm still \u201cgot multi-billions of dollars in institutional sales that they\u2019re on the hook for.\u201d<\/p>\n

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However, in a\u00a0recent blog post, law firm Holland & Knight stated that while interlocutory appeals are permitted, they are rarely granted in practice.<\/p>\n

“Although the court’s grant of summary judgment on certain aspects of the case signal some measure of finality with regard to the SEC’s jurisdictional reach (or lack thereof), an appeal would be deemed interlocutory at this stage, as the court did not dispose of the case in its entirety,” the firm wrote.\u00a0\u00a0<\/p>\n

Therefore, if the SEC decides to appeal, the process could potentially take months or even years.<\/p>\n

The Holland & Knight blog post also noted that Judge Torres explicitly declined to extend her opinion to secondary market sales of XRP or other tokens, leaving room for future conflicts.\u00a0<\/p>\n

As\u00a0reported, Ripple has recently applied for a crypto license in the\u00a0UK<\/strong>\u00a0and\u00a0Ireland\u00a0<\/strong>after its partial win against the US\u00a0Securities and Exchange Commission<\/strong>.<\/p>\n

Sendi Young<\/strong>, Ripple’s managing director for the UK & Europe, has revealed that the company \u201cvery recently\u201d applied for crypto asset firm registration with the UK’s FCA, along with a payment institution license in Ireland.<\/p>\n<\/p><\/div>\n