Court Ruling on Ripple's XRP Token Could Signal Shift in US Crypto Regulation

Background

A recent court ruling that declared Ripple's XRP token not a security offering may have implications for other crypto-related lawsuits and pending ETF applications in the United States. The ruling comes as Ripple has been engaged in a legal battle with the US Securities and Exchange Commission (SEC) since 2020.

Ripple CTO Speaks Out

David Schwartz, the CTO of Ripple, discussed the significance of the ruling during the company's annual Apex developer conference in Amsterdam. He acknowledged that the SEC case has affected Ripple's business deals and community support due to exchanges delisting XRP. However, the recent ruling has allowed exchanges to relist the token, which Schwartz believes is a positive development for the entire crypto ecosystem.

Turning Tide in the US

Schwartz expressed his opinion that the regulatory landscape in the United States is shifting, making it less desirable for crypto ecosystem participants. He indicated that many are now considering moving to other jurisdictions with more favorable regulatory environments. The ruling on XRP is seen as a turning point, as it establishes that the token is not inherently a security.

Industry-wide Scrutiny

Schwartz noted that the SEC's scrutiny is now extending beyond Ripple to other major cryptocurrencies like Solana, Cardano, and Polygon. These tokens, along with others, have been labeled as unregistered securities in the SEC's lawsuits against Coinbase. Schwartz emphasized that the SEC's arguments can be applied to any cryptocurrency or business. He believes that witnessing the SEC's actions against Coinbase and others has helped people better understand the situation.

Pushback and Potential Changes

Schwartz believes that US judges are becoming more skeptical of the SEC's cases and that companies with resources are pushing back against the regulatory agency. He hopes that this pushback, as well as the growing resistance to ETFs, will lead to positive changes in cryptocurrency regulation at the legislative level.

About Ripple's Apex Conference

Ripple's Apex conference is an event that brings together developers working on the XRP Ledger blockchain ecosystem. The XRP Ledger is the foundation of RippleNet, the platform that manages Ripple's XRP payments system.