In a latest Ripple News the company reacts to the summary judgement in the SEC lawsuit through a blog post.
In the blog post published yesterday by the defendant in the lawsuit, Ripple stated that the lawsuit was all about whether XRP could be an investment contract and considered a security. The court, according to Ripple, has decided that XRP token in itself is not a security. Ripple qouted the judgement:
“XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.“
Ripple derived that the summary judgement denies SEC’s claim that a crypto coin, standing alone, is a security.
The blog post also cited Ripple CEO Brad Garlinghouse. The CEO stated that the judgement is not historic only for Ripple but for the whole crypto industry as well. Garlinghouse noted that they have been saying from day one that Ripple is on the right side of law and will be on the right side of history.
Garlinghouse added that the judgement is a major blow to SEC’s regulation through enforcement agenda. He hoped that the decision would prove to be a turning point for congress to finally act to set clear rules for crypto in the US.
The blog post also included a statement from Ripple General Counsel Stuart Alderoty. Alderoty stated that in the judgement the court has distinguished between the nature of a crypto asset and the manner in which it is sold. Alderoty noted that the court deemed XRP on itself not a security asset. Further, Alderoty added that the judgement would have significant effect on how the crypto assets would be classified in the US moving forward.
Alderoty also said that the SEC can no longer target crypto firm’s with scarce resources and be proud of that.