The landmark decision by Judge Torres in the legal battle between Ripple and the US SEC could positively impact the entire crypto industry, said the former’s CEO, Brad Garlinghouse.
He also hopes that the ruling will serve as a wake-up call to US Congress for the upcoming regulations.
Nearly three years after the SEC sued Ripple for allegedly selling its native cryptocurrency (XRP) as unregistered security, Judge Analisa Torres, presiding over the case, ruled earlier this week that almost all sales do not, in fact, constitute securities transactions.
This was considered a major win for the blockchain project, and the hype sent XRP flying to a 19-month peak at $0.95.
However, Ripple’s CEO believes this landmark ruling could benefit the entire industry, and especially other assets, which were recently put in the same boat by the securities regulator in its latest lawsuits against Binance and Coinbase.
“For the SEC is really an overreach to suggest, as the Chair has said many times, that basically, everything in the crypto space is a security. Well, you now have a judge who is very clearly saying that is just not true and very clearly saying XRP is not a security on exchanges and all these different use cases, which I think helps the whole industry, for sure. This is a win for Ripple, it’s also a win for the entire crypto industry.”
Ripple, along with many other US-based crypto companies, has urged the US government to provide more regulatory clarity for years, but to no avail so far. Garlinghouse raised hopes that Judge Torres’ ruling in the case against his company will be a “wake-up call” for the decision-makers in Washington and Congress will finally act.
Hoping yesterday’s decision is the wake-up call that Congress needs. This ruling directly undercuts the SEC’s claims that nearly all tokens are inherently securities – likely to set a positive precedent for other digital tokens in the US.
— Brad Garlinghouse (@bgarlinghouse) July 15, 2023
The US has dropped the ball when it comes down to regulating the crypto industry, and many other nations have taken more decisive steps. At the same time, the US Securities and Exchange Commission has gone out of its way to target multiple crypto projects, companies, and exchanges, but whether the agency has the legal right to do so is still undetermined.
