The San Fransico-based fintech firm has had significant success over the past couple of months. On 12 March, Analisa Torres denied the SEC’s motion to strike Ripple from using a “Fair Notice Defense.” The SEC alleged that the payments company unlawfully sold XRP as an unregistered security. A position the regulator maintained to this day.
Call for a celebration?
The recent court decision to not strike Ripple’s fair notice defense was a victory for the entire crypto industry. Garlinghouse asserted:
“I think it is a victory not just for Ripple the company but also the whole crypto industry. The SEC, I think, has consistently tried to really expand their reach and their control over the crypto industry. We’ve seen that not just with Ripple but in other cases.”
Although, called for an urgent need for regulatory clarity in the US. ‘If we want the US to be a leader in this new growing critical innovative industry, like the internet 20 years ago, we need that regulatory clarity,’ he added. Something that Plaintiff was unable to do. The SEC is really just coming out and saying “we are going to file lawsuits, enforcement. They are not going to provide clear rules so that people know how to operate as other countries have done.”
Unable to provide that could become difficult for the regulators. The former SEC Commissioner Joseph Grundfest, had reiterated concerns on this topic. He claimed, “If you wind up transacting XRP on a foreign exchange, that’s not in the United States, the SEC can’t reach it.” This was in line with the U.S Supreme court’s opinion.
As per the CEO, the SEC harmed the cryptocurrency industry’s competitiveness in the world’s largest economy.
“I think there’s no question that the United States SEC has reduced the competitiveness of this critical industry in the United States. I think they’ve been out of step not just with other parts of the U.S government but they’ve been out of step with other major economies around the world.”
The only country in the world that considered XRP, the digital asset that Ripple uses, could be a security was the United States.
That said, XRP holders have extensively amidst the ongoing battle. The main question here was, despite winning this car, can XRP bounce back?
At press time, XRP suffered a fresh 1% correction as it traded shy of the $0.8 mark. What’s next?