Following the landmark court ruling in Securities & Exchange Commission (SEC) case, Ripple has cleared up some widespread misconceptions regarding the ruling. The company provided a detailed Q2 2023 XRP markets report today, where it underscored the verdict’s implications and presented key statistics about its XRP holdings.
On July 13, 2023, a significant milestone was achieved in the crypto industry as the court declared that XRP is not a security. Ripple stressed that the SEC’s previous efforts at “regulation by enforcement” have been shown to be “a strategy of intimidation and misinformation in furtherance of its own quest for political power.”
Ripple Clears The Misconceptions
1. The decision is not a split one
Contrary to some interpretations, Ripple emphasized that the ruling was a “resounding win.” The court validated the companies’ longstanding assertion that “XRP is not a security and the Court vindicated that position,” which paves the way for other digital tokens to obtain similar classification.
2. XRP is not a security in certain settings
Ripple further clarified that “XRP itself is never a security,” refuting claims suggesting otherwise. It elaborated that an asset, such as XRP or a physical commodity like an orange grove or a gold bar, does not transform into a security when sold with additional promises.
3. A share of stock is always a security, XRP is not
Ripple delineated the difference between a traditional share of stock, which is always a security, and a digital asset like XRP. Unlike stock, whether or not a digital asset is considered an investment contract and therefore a security must be determined on a “transaction-by-transaction basis.”
4. The ruling does not prioritize sophisticated institutions over retail buyers
In response to concerns about the ruling protecting sophisticated institutions at the expense of retail buyers, Ripple explained that the court was delineating the SEC’s jurisdiction. The company stated, “Where there is no investment contract, there is no security; and where there is no security, there is no role for a securities commission.”
5. Ripple can continue to do business
The fintech company also dismissed the misconception that the decision impedes their ability to operate. “Since the SEC filed suit in December 2020, the vast majority of Ripple’s customers and counterparties have been outside the United States,” they stated, adding that they continue to work with non-US partners in clear regulatory environments.
6. The Court did not completely rule against the fair notice defense
Ripple corrected the misinterpretation that the Court entirely dismissed their fair notice defense. The Court only ruled against them regarding their “institutional sales.” The ruling on the fair notice defense for other types of transactions remains open.
Beyond these clarifications, the company shared data about their XRP holdings for Q2 2023, illustrating their transparency. As of June 30, 2023, Ripple held a total of 5,551,119,094 XRP, with an additional 41,900,000,005 XRP subject to the on-ledger escrow.
At press time, the XRP price was at $0.6938, further consolidation above the 23.6% Fibonacci retracement level.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments