Is Ripple About to Get Picked Up By Major Banks? Judge Ruling Flips Ripple From Zero to Hero
I've been following the battle between the SEC and XRP (Ripple Labs) with a close eye. I've always believed that it played a vital role for altcoins and the future of regulation on this industry.
The July 13th ruling in favor of Ripple (XRP) has sparked significant discussions about the future of XRP. This landmark decision determined that XRP is not necessarily a security, which has led to Ripple's general counsel, Stu Alderoty, expressing confidence in XRP's adoption by U.S. banks and financial institutions.
One of the many things that excites me about this ruling is that it has broad implications for investment contracts, the definitions of crypto and decentralized exchanges like Thorchain.
In this post, I'll talk more on the implications of this ruling and the potential future of XRP adoption - as someone who holds 0 XRP and never has.
Ripple vs. SEC
The legal battle between Ripple and the SEC has been ongoing for three years, with the agency alleging that Ripple conducted an illegal offering of $1.3 billion in XRP tokens.
Ripple Labs claims that XRP is a commodity - similar to BTC, as was ruled in years prior. The SEC's assertion that the vast majority of crypto tokens are securities and subject to its strict investor protection rules has been challenged by the cryptocurrency industry.
This ruling has brought us to an entirely new stage for the regulation on crypto.
The Landmark Ruling
The July 13th ruling by U.S. District Judge Analisa Torres was a significant win for Ripple and the cryptocurrency industry as a whole, as it determined that XRP in itself was "not necessarily a security on its face."
However, the ruling also gave the SEC a partial victory, as it found that Ripple violated federal securities law by selling XRP directly to sophisticated investors. Obviously this ruling is specifically about XRP but it has tons of ramifications for other altcoins and you can absolutely bet that other crypto firms will be battling the SEC using this as a framework.
Ripple's Confidence in XRP Adoption
Following the ruling, Ripple's general counsel, Stu Alderoty, expressed confidence in XRP's adoption by U.S. banks and financial institutions. Obviously of interest - and I think why Ripple is up over 70% since the ruling - is that Coinbase, Binance and other exchanges re-listed Ripple.
Alderoty expects to start talks with American financial firms about using its On-Demand Liquidity (ODL) product, which uses XRP for money transfers, in the third quarter.
Potential Implications for XRP
The ruling is expected to have significant implications for XRP, as it provides clarity on the token's status as a security. This clarity is expected to encourage U.S. banks and financial institutions to consider using XRP for cross-border payments.
The adoption of XRP by these institutions could lead to a significant increase in XRP's value. The ruling is also expected to impact other altcoins and how they are regulated by the SEC.
Ripple's On-Demand Liquidity (ODL) product is expected to be a key driver in XRP's adoption by U.S. banks and financial institutions. The ODL product enables real-time cross-border payments using XRP, providing a faster and more efficient alternative to traditional payment methods.
The adoption of ODL by U.S. banks and financial institutions could lead to a significant reduction in cross-border payment fees and transaction times, making it an attractive option for businesses.
Ripple also uses blockchain in its business to send messages between banks, providing a blockchain-based alternative to Swift. Ripple's blockchain-based messaging system is faster and more efficient than Swift, which can take up to several days to settle transactions.
The adoption of Ripple's blockchain-based alternative to Swift by U.S. banks and financial institutions could lead to a significant reduction in transaction times and costs.
Calls for Legislation and Coinbase's Response
Coinbase, the largest U.S. crypto exchange, has responded to the ruling by allowing trading of XRP on its platform. "We've read Judge Torres' thoughtful decision. We've carefully reviewed our analysis. It's time to relist," Coinbase chief legal officer Paul Grewal said on Twitter. Coinbase's response is expected to have significant implications for XRP's adoption by U.S. banks and financial institutions.
The recent ruling in favor of Ripple has sparked significant discussions about the future of XRP and the cryptocurrency industry. Ripple's confidence in XRP's adoption by U.S. banks and financial institutions is expected to lead to a significant increase in XRP's value.
The adoption of XRP by these institutions could lead to a significant reduction in cross-border payment fees and transaction times, making it an attractive option for businesses.
What Do You Think of Ripple (XRP)?
As I said, I've never personally held any XRP. In this industry, you either love it absolutely or you hate it and the people that follow it annoy you.
Despite that, I have always held myself as a non-tribalist in the industry. Every crypto has something to offer. Whether it's a meme following or some greater evolution in technology.
There is a lot of diversity in this space. I'm in favor of Ripple winning this case as I believe it sets a good precedent for the broader altcoin market and overall innovation in this space.
What are your thoughts? Drop a comment below!
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Whereas I don't own any XRP and never have... and likely never will... I appreciate its importance in breaking certain barriers and new ground in the cryptosphere.
Not much society-level change happens in a sudden "whoosh," it tends to be gradual and incremental. Even if XRP is a "centralized bankcoin," it's nonetheless an important part of legitimizing crypto to a wider audience. And that has to be a positive, I think.
=^..^=
i agree with you 100%
They're kinda like the soldiers we put on the frontlines
They are essential and we most likely don't even like them but we do respect the shit out of them
I agree with everything you said. XRP has a lot of value in the market whether you like it or not. I also think this case will have implications for the SEC's cases against Coinbase and Binance. If XRP is not a security when listed on exchanges, then the majority of the cryptocurrencies identified as securities in those two cases won't be securities either. In fact, I'm astonished that the SEC would call some of them securities in the first place. But if a listing on an exchange is not sufficient to make a cryptocurrency a security, then the SEC is already on the losing side. This ruling changes a lot of things.
This ruling is super bullish for all altcoins and the whole industry
I agree.
For a good read, check out the most comprehensive analysis and list of links on the ruling in my latest newsletter.
the incredible work of the Leofinance community on hive is beyond words. I also believe that using XRP for cross boarder payment by the US will also help the economy in securing more measures of payment outside of the usual bank notes although they've gone far in development. Nice information.
I don't personally own XRP but I do think they're up to some cool tech. We'll see how it all shakes out!
That's cool, let's see how everything would transpire.
I personally don't like XRP. They seem to be made up of a high concentration of the "connected elite". In fact, I wouldn't be surprised if this whole government attack was just a dog and pony show of force that is in reality a wrist slap.
In spite of that however, I am rooting for their victory because of what it might bring for other cryptos.
Yep I don't own any either and I am 100% aligned with you on this: