With the U.S. financial watchdog, the SEC, getting close to the Oct. 7 deadline to appeal the recent Ripple ruling, XRP holders are looking forward to seeing what the agency does next. The verdict, which said that secondary XRP sales are not securities, was first seen as a big legal win for Ripple. Some experts, though, think the excitement might be a bit premature.
The distinction Judge Torres made between institutional and programmatic token sales has faced challenges, including being rejected by another Judge, Judge Rakoff. While Ripple is still celebrating the decision as a win for the token's legal clarity, SEC veterans like Marc Fagel have suggested that XRP holders should take a more neutral stance.
Gamza KhanzadaevWith a bit of sarcasm in his tone, Fagel, who used to be a regional director at the SEC, says that according to the court, reasonable XRP holders are not relying on Ripple to make their investment decisions. He says that the outcome of Ripple's legal battles should not have a major impact on how the community sees things.
This is an important perspective for those in the XRP community because the token's price and market sentiment are often closely tied to Ripple's legal status.
Even though there are still some regulatory uncertainties, many believe that the true value of XRP lies in its use cases and business adoption. These factors may remain unaffected by Ripple's ongoing legal challenges.
Godfrey BenjaminAs the SEC's deadline gets closer, the crypto industry is still split as to whether the agency will appeal the ruling. Some think the SEC will ask for more clarification on inconsistencies in the court's approach, while others, like former SEC Division Chief Littman, think the agency might avoid elevating the importance of the case.
Arman Shirinyan
Tomiwabold Olajide
Dan Burgin
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U.Today Editorial Team