Ripple CTO: Positive Shift in US Regulatory Environment
In a significant development for the cryptocurrency ecosystem in the United States, a federal court ruling has declared Ripple’s XRP token not to be a security offering. This ruling could potentially signal a turning point against the regulatory scrutiny faced by cryptocurrencies and related lawsuits involving major platforms like Coinbase and Binance.US, as well as pending exchange-traded fund (ETF) applications.
During an exclusive interview with Cointelegraph at Ripple’s annual Apex developer conference in Amsterdam, Ripple’s Chief Technology Officer, David Schwartz, shared his insights on the implications of this precedent-setting ruling. He highlighted the potential positive impact on ongoing lawsuits against the U.S. Securities and Exchange Commission (SEC) and the wider crypto community:
“The ruling that we’ve had so far was sufficient to allow exchanges to relist XRP, and it was big, I think, for the entire ecosystem.”
Schwartz acknowledged that the SEC case has resulted in lost business deals for Ripple and hindered ecosystem support due to the delisting of XRP on prominent exchanges. However, the recent ruling in favor of XRP has led to a change in sentiment:
“I feel bad that I have to tell people that the United States is probably not where they want to be, but the tide is turning. You know, the ruling in our suit that basically said that XRP is not inherently a security, that’s huge.”
He further emphasized that the wider crypto industry is now experiencing the scrutiny Ripple initially faced from the SEC in 2020. Major blockchain platforms such as Solana, Cardano, and Polygon have seen their tokens labeled as unregistered securities in the SEC’s lawsuits against Coinbase:
“They [the SEC] can apply these very same arguments to whatever cryptocurrency you like or whatever business you like. Fortunately, people understand that argument a lot better now that they’ve seen the SEC go after Coinbase and others and some of the things they’ve done.”
Schwartz believes that U.S. judges are becoming more skeptical of SEC cases, and companies with the necessary resources are now taking a stand that will benefit the wider industry:
“They’re starting to get huge pushback from Coinbase and pushback on the ETFs. Hopefully, that will prompt some changes at the legislative level, hopefully positive ones.”
Ripple’s Apex conference serves as a platform for developers building within the XRP Ledger blockchain ecosystem, which powers RippleNet and the XRP payments system.
The recent court ruling declaring Ripple’s XRP token not to be a security offering has potentially significant implications for the regulatory environment in the United States. This ruling brings hope to the wider cryptocurrency ecosystem and ongoing lawsuits against the SEC. The positive shift in regulatory scrutiny, as noted by Ripple’s CTO, signals a turning tide and a potential change in sentiment towards cryptocurrencies in the United States.
With the recent ruling in favor of Ripple and the positive developments in the U.S. regulatory environment, it is an exciting time for the cryptocurrency industry. Stay updated with the latest news and trends in the crypto space by visiting Uber Crypto News.