Cryptocurrency

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July 13, 2023, saw a landmark ruling in the United States Securities and Exchange Commission’s (SEC) case against Ripple Labs. The ruling determined that the XRP token is not a security when sold on public exchanges. The decision had implications for the cryptocurrency market and the regulatory landscape in the US.
The ruling was a significant victory for the blockchain-based digital payment network and set a precedent for classifying cryptocurrencies. The SEC initially <a href="https://cointelegraph.com/news/sec-unveils-1-3b-suit-against-ripple-over-xrp#:~:text=SEC%20unveils%20suit%20against%20Ripple%2C%20calling%20XRP%20a%20'%241.3,offering%22%20to%20investors%20since%202013.">filed a lawsuit against Ripple</a> in December 2020, alleging that the company had conducted an unregistered securities offering by selling XRP (<a href="https://cointelegraph.com/xrp-price-index">XRP</a>) tokens. 
However, Ripple argued that XRP should be considered a currency rather than a security, and after a lengthy legal battle,&nbsp;<a href="https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security">the court partially sided with Ripple</a>. However, the decision was not entirely in the industry’s favor because Ripple was found to have broken the securities laws when it offered XRP to hedge funds and other institutional buyers.
<h3 data-ct-non-breakable="true" id="implications-for-the-cryptocurrency-market">Implications for the cryptocurrency market</h3>
The ruling provided a degree of regulatory clarity for the industry. Cryptocurrencies have often operated in a gray area, with regulatory agencies struggling to classify and regulate them appropriately. 
By ruling that XRP is not a security when sold on retail exchanges, the court established a precedent that could influence how other cryptocurrencies are viewed and regulated. This ruling also had a positive impact on XRP’s market value. TradingView data shows XRP’s price <a href="https://www.tradingview.com/symbols/XRPUSD/" target="_blank" rel="noopener nofollow">surged</a> nearly 6% after the decision.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/39633b40-9e81-4d9d-8e17-32cfea6a597d.png" alt="SEC vs. Ripple: One year on since landmark ruling" title="">
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 Source: <a href="https://x.com/s_alderoty/status/1811868845990126026" target="_blank" rel="noopener nofollow">Stuart Alderoty</a>
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Ripple’s chief legal officer, Stuart Alderoty, <a href="https://x.com/s_alderoty/status/1811868845990126026" target="_blank" rel="noopener nofollow">shared</a> his thoughts on X, stating that the decision has paved the way for other cases — including <a href="https://cointelegraph.com/news/crypto-court-ruling-bnb-binance-not-securities">the SEC’s case against Binance</a>&nbsp;—&nbsp;to recognize the agency’s overreach and departure from legal principles under Gary Gensler’s leadership. 
Related:&nbsp;<a href="https://cointelegraph.com/search?query=Ripple#:~:text=SEC%20will%20not%20pursue%20enforcement%20action%20against%20Paxos">SEC will not pursue enforcement action against Paxos</a>
Alderoty emphasized that relying on prolonged litigation to determine the status of each token on a case-by-case basis is an unsatisfactory solution.
<h3 data-ct-non-breakable="true" id="regulatory-developments-and-ripple-s-progress">Regulatory developments and Ripple’s progress</h3>
Over the past year, the case has continued to develop, with Ripple and the SEC engaging in <a href="https://cointelegraph.com/news/ripple-legal-chief-unveils-sec-xrp-settlement-offer-pre-2020-lawsuit">further legal battles and negotiations</a>. The SEC has not backed down entirely, and the regulatory environment remains complex and challenging. However, Ripple has used this period to bolster its legal arguments and reinforce its position in the market.
Magazine: <a href="https://cointelegraph.com/magazine/coinbase-sec-lawsuit-bitcoin-mining-metalawman-x-hall-of-flame/">X Hall of Flame: Coinbase ‘is going to win’ says MetaLawMan</a>

SEC vs. Ripple: One year on since landmark ruling

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