The recent victory of Ripple Labs over US securities regulators has been seen as a setback for the regulators' "cryptocurrency wars." However, cryptocurrency lawyers caution that it is not a definitive win for the industry.
In a significant ruling on July 13, US District Judge Analisa Torres determined that XRP should not be considered securities, at least when sold to the public. The decision was met with enthusiasm by XRP holders and resulted in a surge in the token's price. Industry Leaders have hailed the ruling as potentially beneficial for cryptocurrency exchanges such as Coinbase and Binance, which are currently facing their own legal battles.
Luke Martin, founder of cryptocurrency investment firm Venture Coinist, highlighted that the US Securities and Exchange Commission (SEC) claimed in its lawsuits against Coinbase and Binance that they offered the sale of unregistered securities on their platforms. Martin believes the XRP case loss will be a significant blow to the SEC and its chairman, Gary Gensler. Pro-XRP lawyer John Deaton shares a similar view, stating that Coinbase is another "winner" in the ruling, which could benefit alternative cryptocurrencies.
Tyler Winklevoss, CEO of cryptocurrency exchange Gemini, stated that the ruling "completely destroys" the SEC's case against Coinbase. Cameron Winklevoss, his twin brother, described the ruling as a "watershed moment" that will make it challenging for the SEC to assert author the city over cryptocurrencies. Following the decision, Coinbase, Kraken, and iTrustShares have relisted XRP on their platforms.
Despite the positive outcome for XRP, some digital asset lawyers urge caution. They note that the ruling by Judge Torres is only a partial summary judgment and does not establish a predecessor. It may serve as persuasive commentary for future courts but can still be. appealed. The SEC is likely to appeal the decision, and a higher court could potentially overturn Torres' ruling, according to legal experts like Stephen Palley.
Justin Slaughter, Paradigm policy director and former SEC advisor, suggests that even if the SEC wins at the appeal level, they could face challenges at the Supreme Court. Slaughter points out the Supreme Court's recent skepticism towards certain agencies and their staffing practices. US Attorney James "MetaLawMan" Murphy also mentions that Ripple must still address the SEC's allegations against CEO Brad Garlinghouse and co-founder Chris Larsen, who are accused of aiding and abetting the sale of XRP. The SEC claims that institutional sales of XRP amounted to $72 8 million .
Joe Carlasare, a US commercial litigator, strongly criticized Garlinghouse, alleging that Ripple made an illegal profit of $700 million.
