XRP Lawsuit Decision: Is It Too Early To Rejoice?

Legal experts caution that the case is far from over for XRP holders. The Securities and Exchange Commission (SEC) has an option for a legal appeal.

The debate over whether or not XRP is a security was resolved on Thursday by Judge Analisa Torres. It’s possible that the XRP v. SEC litigation will represent a turning point in the cryptocurrency sector and lead to regulatory clarity in the US.

However, legal experts caution that Ripple and XRP holders’ troubles are not yet completely over, especially in light of the U.S. Securities and Exchange Commission’s (SEC) option for a legal appeal.

The verdict in the lawsuit appears to have set the stage for what may turn out to be a protracted and lucrative bull run, as seen by the 5.5% increase in the worldwide market cap of cryptocurrencies over the past 24 hours.

A number of alternative coins have gained traction as the price of XRP alone increased by over 75% and shot to the top four by market cap.

Future Challenges for Ripple-XRP, Following Legal Decision

Judge Torres previously decided that XRP is not a security, supporting her decision with the claim that the sale of the coin does not constitute an investment contract.

This prompted renewed calls for the listing of XRP on US-based exchanges like Coinbase. US lawyer Bryan Jacoutot issued a warning that the US SEC may be able to appeal the case to the court on the basis of certain premises.

Buyers of XRP were unaware of the identity of the seller. Therefore, they had no expectation that the token would be used to finance the business. The SEC, however, can contest whether the purchasers can anticipate financial gain from the third party’s efforts.

Bill Hughes, an attorney at Consensys, concurred and stated that he would be surprised if the SEC didn’t immediately appeal this to the Second Circuit because the sale of XRP by Ripple plainly equated to it being an investment contract.

To determine if Ripple executives encouraged and enabled this unregistered issuance, a jury will be required.

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