Cryptocurrencies are not performing well after the drop in Bitcoin prices. Altcoins have turned red. The summary judgment of the Ripple case had convinced investors of further gains, but sellers have regained control. As crypto investors await clear regulations, the price of Bitcoin tested $28,800.
XRP Coin Case
Stuart Alderoty, Chief Legal Officer of Ripple, stated in a recent statement that the most important part of this ruling was the court clearly stating that XRP is not a security in and of itself. Alderoty emphasized that considering this, the XRP ruling is no longer a legal issue and is not subject to litigation.
“Furthermore, other findings not subject to litigation include that sales on exchanges are not securities, sales made by executives are not securities, and other XRP distributions to developers, charities, and employees are not securities. The court’s ruling can now be used by other individuals targeted by the SEC.”
Cryptocurrency Regulations
While the XRP court ruling marks an important milestone for the entire crypto industry, Alderoty stated that he hoped Congress would use this ruling to create a clear regulatory framework for the future. However, this hope is not enough as these rules do not establish a clear legal framework.
The U.S. Securities and Exchange Commission (SEC) may appeal the XRP ruling. Lewis Cohen, co-founder of DLx Law, a law firm focusing on crypto assets and blockchain technology, said that the SEC could “reverse” this ruling by taking it to appeal after it has become final.
“They can also file similar cases in other federal districts seeking alternative outcomes.”
A blog post published by the law firm Holland & Knight elaborates on this idea. The firm states that “the court’s summary judgment about specific aspects of the case indicates to some extent the certainty (or lack thereof) regarding the SEC’s jurisdictional access, and since the court did not completely dismiss the case, the appeal will be temporarily accepted at this stage.”
The XRP Coin ruling may provide temporary relief for Ripple, which is currently in trouble with the SEC, but the rest of the industry needs clear rules to breathe easier. This could take years. The House of Representatives will vote on two crypto bills on Wednesday evening, but the chances of them passing the Senate and reaching Biden’s desk appear slim.
As the U.S. elections approach, the Biden administration has preferred to take a crypto-hostile stance.
