Ripple’s Recent Legal Victory Establishes Precedent for the Crypto Industry

In a noteworthy development for the cryptocurrency sector, CEO Brad Garlinghouse has underscored the company’s recent legal triumph against the U.S. Securities and Exchange Commission (SEC), which sets a significant precedent for other players in the crypto space. This update was shared during a panel discussion organized by Messari on Thursday.

Garlinghouse discussed the partial victory that Ripple achieved, describing it as a “big victory” and comparing it to a “freight train” that challenges Chairman Gensler’s perspective on securities. He stressed the decentralized nature of Ripple and its associated XRP tokens, which were central to the lawsuit initiated by the SEC in December 2020.

The court’s ruling determined that XRP tokens do not qualify as investment contracts, resulting in their reinstatement on major exchanges. This decision is viewed as a crucial counter to the SEC’s efforts to categorize certain cryptocurrencies as securities.

Additionally, Garlinghouse criticized what he referred to as the SEC’s intimidation tactics masquerading as legal wins. He praised Grayscale and Coinbase for standing firm against such pressures, noting their significant roles in confronting regulatory challenges in the industry.

This ruling not only represents a key milestone for Ripple but also has broader implications for the cryptocurrency market, potentially affecting how digital assets are regulated and classified in future legal disputes.