{"id":122368,"date":"2023-07-14T09:35:37","date_gmt":"2023-07-14T09:35:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/after-us-court-rules-ripple-xrp-not-security-industry-remains-cautious-crypto-news\/"},"modified":"2023-07-14T09:35:39","modified_gmt":"2023-07-14T09:35:39","slug":"after-us-court-rules-ripple-xrp-not-security-industry-remains-cautious-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/after-us-court-rules-ripple-xrp-not-security-industry-remains-cautious-crypto-news\/","title":{"rendered":"After US court rules Ripple XRP not security, industry remains cautious\n &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>US District Court Judge Analisa Torres <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forkast.news\/headlines\/us-court-rules-in-favor-of-xrp-in-ripple-labs-case-against-sec-with-caveats\/\">governed<\/a> on Thursday that Ripple Labs&#8217; programmatic sales of its XRP cryptocurrency did not qualify as financial securities, or the offer and sale of investment contracts. <\/p>\n<p>This decision came after over 30 months of legal back-and-forth between the US Securities and Exchange Commission (SEC) and Ripple, and provided some relief to XRP and crypto investors worldwide.<\/p>\n<p>The price of XRP soared about 85% to US$0.8777 after the decision was announced, although it has since come down to US$0.7833 at 4:30 pm in Hong Kong.<\/p>\n<p>\u201cAlthough this is a US ruling on the XRP token specifically, its impact will be felt across the Alts category (non-bitcoin) around the world, as it was considered a test case for other tokens,\u201d Caroline Bowler, CEO of Australia- based crypto exchange BTC Markets <em>Forecast<\/em> in an email.  \u201cThis result has been a boon for crypto trading which is slowly coming out the other side of its prolonged bear market.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1260\" height=\"709\" src=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-1260x709.jpg\" alt=\"Ripple Vs SEC Images\" class=\"wp-image-80006\" srcset=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-1260x709.jpg 1260w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-610x343.jpg 610w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-768x432.jpg 768w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-1536x864.jpg 1536w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6-832x468.jpg 832w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/11\/Ripple-Vs-SEC-Images-6.jpg 1920w\" sizes=\"auto, (max-width: 860px) 100vw, (min-width: 861px) 630px\" title=\"After US court rules Ripple XRP is not a security, industry remains cautious 2\"\/><\/noscript><figcaption class=\"wp-element-caption\">This decision came after over 30 months of legal back-and-forth between the US SEC and Ripple.  Image: Canva, Envato Elements<\/figcaption><\/figure>\n<p>Solana rose by 30%, Cardano gained 25% and Polygon added 18% in the last 24 hours \u2014 which Hong Kong-based crypto market maker Keyrock&#8217;s Justin d&#8217;Anethan said is \u201cbolstered by the sentiment that we now have some regulatory confidence that the projects wouldn&#8217;t be labeled securities.<\/p>\n<p>The three cryptocurrencies saw double-digit losses in token value in early June when the SEC categorized the tokens as financial securities in its <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forkast.news\/headlines\/blockchain-association-coinbase-sec-crypto\/\">litigation<\/a> against Coinbase and Binance.US exchange.<\/p>\n<p>US Republican congressman and Majority Whip for the House of Representatives Tom Emmer welcomed the court decision, tweeting that it is a \u201c<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/GOPMajorityWhip\/status\/1679525171479150592\">monumental development<\/a>\u201d in establishing that a cryptocurrency is separate from an investment contract that constitutes a financial securities contract. <\/p>\n<p>Cardano co-founder Charles Hoskinson <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/IOHK_Charles\">retweeted<\/a> Emmer&#8217;s comments, in which the congressman said he intends to push regulatory clarity further with his bill, the Securities Clarity Act.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" data-lazyloaded=\"1\" decoding=\"async\" width=\"1200\" height=\"774\" src=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o.jpg\" alt=\"SEC fails to block XRP holders from helping in Ripple case\" class=\"wp-image-68098\" srcset=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o.jpg 1200w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o-610x393.jpg 610w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o-768x495.jpg 768w\" data-sizes=\"(max-width: 860px) 100vw, (min-width: 861px) 630px\" title=\"After US court rules Ripple XRP is not a security, industry remains cautious\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"774\" src=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o.jpg\" alt=\"SEC fails to block XRP holders from helping in Ripple case\" class=\"wp-image-68098\" srcset=\"https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o.jpg 1200w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o-610x393.jpg 610w, https:\/\/forkast.news\/wp-content\/uploads\/2022\/07\/51819654082_5a3a7fbe30_o-768x495.jpg 768w\" sizes=\"auto, (max-width: 860px) 100vw, (min-width: 861px) 630px\" title=\"After US court rules Ripple XRP is not a security, industry remains cautious\"\/><\/noscript><figcaption class=\"wp-element-caption\">But experts say Ripple is not yet out of the woods, even with the court ruling.  Image: Flickr<\/figcaption><\/figure>\n<p>While it appears that the US court&#8217;s decision was a big win for Ripple and crypto, Ripple is not completely out of the woods yet, experts say.<\/p>\n<p>The court concluded that Ripple&#8217;s direct sales of XRP to institutional clients, such as hedge funds, constituted the unregistered offer and sale of investment contracts, violating the securities law.<\/p>\n<p>\u201cThere will be further court proceedings on that part \u2026 It is also not yet known if the SEC will appeal the ruling,\u201d BTC Markets&#8217; Bowler said.  \u201cPotential for more insecurity ahead for Ripple.\u201d<\/p>\n<p>Townsend Lansing, the head of product at European digital investment group CoinShares, said the court&#8217;s conclusion of classifying XRP&#8217;s direct institutional sales as securities marks a &#8220;considerable victory&#8221; for the SEC and sets a precedent for the agency&#8217;s future legal actions against other crypto. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>The lack of [regulatory] clarity serves nobody, particularly, after today, the SEC<\/p>\n<p><cite>Lachlan Feeney, founder of Australian blockchain developer Labrys<\/cite><\/p><\/blockquote>\n<p>\u201cIt is important to note that institutional investors who purchased directly from Ripple may find themselves subject to class-action litigation as potential underwriters,\u201d Lansing said in an emailed statement.  &#8220;This is an area to watch closely, especially if big-name venture capitalists were involved.&#8221;<\/p>\n<p>Lachlan Feeney, founder of Australian blockchain developer Labrys, said the case highlighted the absurdity of the regulatory ambiguity seen in the world&#8217;s largest economy.<\/p>\n<p>\u201cIt has never been more evident that we need pragmatic regulatory clarity \u2013 based on collaborative discussion between industry and policymakers,\u201d Feeney commented via email.  &#8220;The lack of clarity serves nobody, particularly, after today, the SEC.&#8221;<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US District Court Judge Analisa Torres governed on Thursday that Ripple Labs&#8217; programmatic sales of its XRP cryptocurrency did not qualify as financial securities, or the offer and sale of investment contracts. This decision came after over 30 months of legal back-and-forth between the US Securities and Exchange Commission (SEC) and Ripple, and provided some [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":122369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-122368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=122368"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122368\/revisions"}],"predecessor-version":[{"id":122370,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122368\/revisions\/122370"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/122369"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=122368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=122368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=122368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}