A battle won, but a war far from over? Justice has finally decided in the lawsuit between Ripple and the US regulator. The token XRP is not a security (an action) under the law. Fact, the SEC (Securities Exchange Commission) has no authority to impose its demands on crypto businesses. This is what she had been trying to do relentlessly since the start of 2023. Back to the consequences of a trial that could still last for years.
SEC: an appeal is not for now
Last week undoubtedly marked a turning point in the crypto ecosystem fight in the face of the American financial policeman. In the lawsuit against the SEC of Gary Gensler, the decision of the Judge Analisa Torres leaned over in favor of the Ripple company, issuer of the XRP token. When a token is sold via an exchange, the court considers that the sale does not meet the criteria of the Howey test, so that this token is simply not a financial security (security in English). In fact, the SEC has no authority.
If this is valid for XRP, then this is justified too for any other token. A liberating decision for an entire ecosystem that could find more leeway and freedom to innovate. Indeed, this lawsuit now establishes a precedent on which these crypto companies can rely in the event of a future lawsuit. Brad GarlinghouseCEO of Ripple, also states that if the SEC decided to appeal the decision, it would only further confirm Judge Torres in his decision.
For him, it could be years before the SEC finds the opportunity to appeal:
“In matters of law, the law of the land today is such that XRP is not a security. Until there’s an opportunity for the SEC to file a lawsuit, which could take years, frankly, we’re really optimistic. »
>> Binance offers you 1 chance to win 1 bitcoin! Register quickly to click on the button (commercial link) <<
The USA back in the race for cryptos?
Despite everything, Ripple is not all white either. THE XRP tokens sold OTC (over the counter)i.e. directly to institutions, have indeed been classified as securities. Brad Garlinghouse brushes aside the impact of this part of the verdict with the back of his hand. For him, this is only anecdotal given the magnitude of the overall decision.
However, this could be important in the future. Indeed, now the brand new token sale could run directly through exchanges and outside of institutional circuits, in order to avoid qualification as security of these. So, will we move towards easier access to investment in new projects and at better prices for individuals? We will see it in the next few years.
“I hope that the decision (…) [de justice] will be the wake-up call Congress needs. This move extinguishes claims by the SEC that almost all tokens are securities. [Cela] should set a positive precedent for all other digital assets in the USA. »
For Brad Garlinghouse, this court decision should give more freedom to companies in crypto sector to pursue their innovation activities, without the weight of the SEC’s gaze on their shoulders and the threats of associated sanctions. What curb the ardor of Gary Gensler, quick to accuse these crypto companies of all words. A way also perhaps to relaunch the USA in the web innovation race 3.
The regulation mistreats your cryptocurrencies? Register quickly on Binance THE reference crypto platform, to try to win the game and add 1 bitcoin to your portfolio. What do you decide? (commercial link)