On July 13, 2023, Ripple Labs, a cryptocurrency-based software company, secured victory in its legal battle against United States (US) Securities and Exchange Commission (SEC). Experts believe that this development can help create the long-awaited regulatory landscape around the cryptocurrency industry.
“I believe that this ruling brings clarity for crypto. While crypto has its reported share of bad actors, I consider that majority of crypto participants are here to innovate and build the ecosystem. Rulings like these can help build confidence for all the builders as well as the investors’ ecosystem,” Nischal Shetty, co-founder, Shardeum, a layer-1 blockchain platform, told FE Blockchain.
Going by the verdict, Analisa Torres, US District Judge, stated that Ripple Labs didn’t hamper federal securities laws, by conducting XRP token-based transactions on public exchanges. However, Torres ruled part of the judgement in favour of SEC, by also mentioning that XRP token qualifies as a security upon sale to institutional investors, according to Howey Test, a legal test conducted in US.
This is a huge step forward towards mass adoption.
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