Ripple’s Legal Victory Against SEC Shifts Industry Dynamics, but Challenges Remain
The withdrawal of the US SEC’s appeal against Ripple has marked a pivotal shift in the legal dynamics surrounding the cryptocurrency.
Crypto lawyer John Deaton explained that this decision essentially affirms that XRP tokens should be viewed as digital commodities, rather than securities. This change in perspective could set a precedent for the industry.
Despite the positive development, Ripple is not entirely free from ongoing legal challenges. The company still faces a hefty $125 million judgment for allegedly selling XRP improperly. However, with the SEC stepping back, Ripple may have a chance to negotiate a more favorable settlement.
Deaton, who has been an advocate for XRP holders throughout the case, noted that Ripple’s legal team now holds an advantageous position. The SEC’s abrupt shift in its approach to cryptocurrency could give Ripple leverage in any potential settlement talks. Deaton also pointed out the importance of the cross-appeal filed by Ripple in late 2024. The SEC, according to Deaton, likely wants to avoid any further legal actions that could undermine its jurisdiction or negatively impact future regulatory efforts.
READ MORE: ECB Official Warns U.S. Crypto Policies Could Threaten Global Financial Stability
Another sticking point for Ripple remains the injunction imposed by Judge Analisa Torres. This ruling prevents the company from selling XRP to institutional investors, which is a major limitation for Ripple’s business in the US. Overcoming this injunction will be a key challenge for Ripple moving forward.
Deaton reflected on the broader implications of the case, seeing it as a broader attack on the entire crypto industry, particularly from traditional financial sectors. Despite the adversity, Ripple has continued to assert its position, with its CEO Brad Garlinghouse emphasizing the company’s commitment to the US market. Deaton remains optimistic about Ripple’s future, seeing its resilience as a significant strength in the ongoing battle.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
