XRP Court Ruling Marks Important Milestone, But New Crypto Law Could Take Years

Ripple's partial victory against the SEC is a positive, but crypto companies still face uncertainty without a regulatory framework.

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The recent court ruling that Ripple's XRP token (XRP) is not considered a security when sold on digital asset exchanges has sparked a wave of positive sentiment in the cryptocurrency ecosystem.

Stuart Alderoty, chief legal officer of Ripple, told Cointelegraph that he thinks the most important part of this decision is that the court unequivocally stated that XRP is not, in and of itself, a security. Given this, Alderoty noted that the XRP decision is now a matter of law and cannot be judged.

“Additionally, other findings that are not subject to trial include the following: sales on exchanges are not securities, sales by executives are not securities, and other distributions of XRP to developers, charities and employees are not securities. The court ruling can now be used by others in the crosshairs of the SEC,” he said.

We said in December 2020 that we were on the right side of the law, and we will be on the right side of history. Thank you to everyone who helped us make today's decision - one that affects all crypto innovations in the United States. More to come.

— Brad Garlinghouse (@bgarlinghouse) July 13, 2023 The decision does not guarantee clear regulations

While the XRP court ruling marks an important milestone for the entire crypto industry, Alderoty noted that he hopes Congress will use the ruling to create a clear regulatory framework going forward. "There will be further legal proceedings pursuant to the court order, and we are evaluating next steps," he said.

The US Securities and Exchange Commission (SEC) may appeal the XRP decision. Lewis Cohen, co-founder of DLx Law – a law firm specializing in crypto assets and blockchain technology – told Cointelegraph that the SEC could “overturn” this decision by appealing once it becomes final. "They can ...