Following Ripple's pivotal legal victory, CEO Brad Garlinghouse took to Twitter to express his immense gratitude for his team and the achieved outcome.
Garlinghouse hailed the court decision as an "unequivocal win for Ripple and for crypto in the US," indicating the far-reaching implications the ruling could have on the wider crypto landscape.
The verdict came almost three years after the initiation of a lawsuit by the Securities and Exchange Commission (SEC), marking a landmark moment for Ripple and the entire U.S. crypto industry.
The court’s decision on July 13 decisively determined that Ripple's digital token, XRP, is not a security, a classification that would have subjected it to more stringent regulatory oversight.The pivotal not only absolves Ripple from the SEC's allegations but also sets a crucial precedent for the regulation of other crypto assets in the United States. This decisive win against the SEC, the first of its kind in the industry, could influence the categorization of other cryptocurrencies, possibly mitigating future regulatory disputes.
This victory, though hard-fought, may well become a turning point in the way cryptocurrencies are viewed and regulated in the country.
Alderoty criticizes the SEC's misinterpretation of law
Garlinghouse echoed the sentiments of Ripple's chief legal officer Stuart Alderoty, who criticized SEC Chairman Gary Gensler for allegedly misinterpreting the law and the Howey Test.
The latter is a test created by the Supreme Court for determining whether certain transactions qualify as "investment contracts."
Alderoty stated, "The Court's ruling can now be used by others in the agency’s crosshairs. The SEC can no longer tout their record in crypto – which was, up until now, by and large settlements with players that didn’t have the resources or conviction to fight back.”