After almost three years of “going through the courts,” the software company Ripple Labs has won a legal victory over the US Securities and Exchange Commission (SEC). The argument that the Ripple Labs company should have reported the initial offering of its eponymous token (ticker XRP) at around 1.3 billion dollars through the SEC confirmed that this token is a security and must be subject to appropriate regulation.
Ripple Labs said at the beginning of the week that it hopes that US banks will start using XRP more and more after the court victory, and investors interpreted this decision as positive.
XRP is the fourth largest cryptocurrency in the world by market capitalization, and in one day, it jumped to its highest value since April 2022, at around $0.77 apiece.
XRP is the first cryptocurrency to suffer a ‘full-blown’ attack on its status and operations by the SEC. This victory is very important for the entire industry because it confirms that it was on the right track. Moreover, it shows that Ripple can now take a sigh of relief because of the legal path. The first day after the victory announcement, XRP jumped more than 90 percent, pulling the entire market up.
A bunch of projects in the crypto world are already allocating separate funds for the legal-judicial fight against the SEC, as well as commissions in other countries.
Why Ripple?
Ripple is one of the biggest cryptocurrencies because it can replace current, outdated money transfer protocols, such as the international SWIFT. It simplified the process, and many believe that more than 30 large world banks are currently testing Ripple in their businesses ‘behind the curtain.’ Still, they were waiting for this confirmation to start the next development phase.
In the end, Ripple met every requirement before it and passed the most rigorous scrutiny of the US regulator. It’s a great catchphrase for the continued development of central bank digital currencies, which has also stalled recently.
Central Banks, Pros and Cons
As our interlocutor reminds us, the main proponents of the democratization of cryptocurrencies and verification of their security are, in fact, organizations that fight for the protection of human rights. Controlling institutions that launch cryptocurrencies is very important because they provide many abusable options. For example, the Chinese authorities released a trial of digital yuan that had to be spent by the 15th day of the month. Otherwise, it could no longer be used. No one wants to have such money in their hands. Others control the pace of spending.
As a civilization, we have already practically switched to electronic forms of payment, and it is good that there are many skeptics and opponents of introducing new technologies because it makes the regulation well applied, with the inclusion of ethical control.
