Ripple’s Chief Legal Officer, Stuart Alderoty, has once again clarified the status of XRP, asserting that it is not classified as a security. This topic continues to provoke discussions, despite a definitive court ruling. In July 2023, Judge Analisa Torres determined that XRP, when traded on secondary markets, does not qualify as a security. While the U.S. Securities and Exchange Commission (SEC) is appealing specific aspects of this decision, it is not contesting the fundamental ruling regarding XRP’s classification as a non-security asset.
Clearing Up XRP’s Securities Status
In an effort to dispel any lingering confusion, Stuart Alderoty took to social media platform X, using humor to illustrate his point. He shared an image of a Taylor Swift concert ticket, drawing a parallel to XRP. Just as the resale of a concert ticket does not transform it into a security, Alderoty emphasized that trading XRP does not automatically subject it to securities law. His analogy underscores that not all traded assets fall under the securities category.
Furthermore, Ripple is gearing up to respond by filing Form C, as mandated. The SEC’s appeal is centered on accusations against Ripple executives Brad Garlinghouse and Chris Larsen for their roles in XRP sales, and it is seeking a ‘de novo’ trial. This ongoing legal battle between Ripple and the SEC could potentially extend until 2025. It follows a partial victory for Ripple in 2020, where XRP was declared not a security when sold on exchanges.
And It May Go On….
As the courtroom clash between Ripple and the SEC continues, Ripple is preparing to submit its response to the SEC’s latest appeal. Although the SEC is not disputing XRP’s non-security status, the ongoing lawsuit casts uncertainty over XRP’s future price movements. Currently, XRP is trading at $0.5469, reflecting a minor decline of 0.6% as the unfolding case developments add more uncertainty to its future trajectory.
XRP Price is Gaining Momentum
Despite the legal entanglements, the SEC’s decision not to contest XRP’s security status has infused a sense of optimism in the market. Market analyst Egrag Crypto predicts a potential rise in XRP’s price to $1.50 in the near future, although it is currently valued at $0.55. Despite an 11% drop in trading volume over the past day, XRP purchases in the futures market are on the rise, with open positions increasing by over 2% to reach $770 million.
The ongoing legal saga between Ripple and the SEC is a critical factor influencing XRP’s market dynamics. As developments unfold, stakeholders remain watchful of the implications for Ripple, its executives, and the broader cryptocurrency market. As the dust settles, investors and enthusiasts alike are keenly observing how these legal proceedings will shape the trajectory of XRP and the regulatory landscape of digital assets.
