The recent ruling by Judge Analisa Torres in favor of Ripple against the US Securities and Exchange Commission (SEC) has had significant impacts on XRP and its unique status in the United States. This ruling, which declared that XRP is not a security, provides much-needed clarity for Ripple and its token, opening the door for the company to expand its business both domestically and internationally.
In an interview with CNBC, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty emphasized the significance of the court’s decision on July 13. He stated that XRP is now uniquely classified as a non-security in the US, giving it a distinct status among other cryptocurrencies. This ruling provides Ripple with the legal standing and certainty it needs to move forward.
The victory against the SEC and the resulting classification of XRP as a non-security has certainly been positive for Ripple. Ripple’s President Monica Lang expressed how the ruling has provided clarity for the company and enabled it to pursue growth opportunities. With the legal battle behind them, Ripple can now focus on expanding its operations in the US and globally.
However, Alderoty also acknowledged that not every crypto company and token should have to go through the same legal battles with the SEC to gain clarity. He stressed the need for a rational regulatory framework that provides clear guidelines for the industry. While there have been some proposals for such a framework, Alderoty is not optimistic about them materializing in the current or upcoming Congress sessions.
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One of the reasons for the lack of regulatory clarity in the US crypto industry, according to Alderoty, is the prioritization of politics and power over sound policy. He believes that agencies are more focused on establishing authority and jurisdiction rather than developing effective regulatory policies. For Alderoty, a licensing-based regulatory framework would be the most appropriate approach to overseeing the industry.
He pointed to other countries like Singapore, the United Kingdom, Dubai, Brazil, Australia, and Japan as examples of jurisdictions that have successfully implemented regulatory regimes for cryptocurrencies. Regulators in these countries aim to encourage innovation while ensuring compliance with their regulations. The Monetary Authority of Singapore, for instance, requires Virtual Asset Service Providers (VASPs) to obtain a license before operating in the country.
Interestingly, Ripple’s subsidiary in Singapore recently obtained a Major Payments Institution (MPI) license from the Monetary Authority of Singapore. This license enables Ripple to provide regulated digital payment token services in Singapore. It is expected that Ripple will enjoy similar success in the US, potentially engaging in talks with financial institutions about implementing its technology for cross-border transactions.
In conclusion, the recent ruling in favor of Ripple against the SEC has had profound effects on XRP’s status as a non-security in the US. This victory provides clarity for Ripple and paves the way for the company to pursue expansion opportunities. However, there is still a need for a rational regulatory framework that fosters innovation while maintaining regulatory compliance. Ripple’s success in obtaining a license in Singapore demonstrates the potential for further advancements in the US market.
