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The argument that XRP is a security remains in the ecosystem despite the clear stance of the Court on the subject. In July 2023, Judge Analisa Torres ruled that XRP is not a security when traded on secondary marketplaces. While the U.S. Securities and Exchange Commission (SEC) is appealing some aspects of the ruling, it is not contesting the status of XRP as an asset.
Need for more XRP securities clarity
With the U.S. SEC filing its Form C in the Ripple lawsuit recently, some community members might not understand the distinction in XRP’s securities status. As such, Ripple CLO Stuart Alderoty took to X to provide an analogy to clarify the conversation.
Gamza KhanzadaevHe shared two images, one showing a Taylor Swift Eras Tour Ticket at the Hard Rock Stadium and the other bearing the bead-like inscription, "XRP IS NOT A SECURITY."
Commenting on the post, the Ripple CLO said that XRP is not a security, just as the Taylor Swift ticket is.
"The secondary market for this ticket doesn’t make it a security—just like trading crypto doesn’t. Not every market is a securities market," he said.
The post has garnered enough traction on X, with many, including Coinbase CLO Paul Grewal, ironically pointing out how Taylor Swift does not promote the tickets. This directly hinges on regulators' claims that security is an asset that benefits users from the effort or promotion of others.
Long road ahead
While it is not the issuer of XRP, the digital currency plays a crucial role within the Ripple Labs ecosystem. As a bridge currency for cross-border settlement, XRP has remained the core focus of Ripple’s payment ecosystem.
With the SEC’s appeal in the ongoing lawsuit, Alderoty has confirmed the company will file its response in the coming week. With the lawsuit elongated, XRP might have more instability ahead concerning its price growth.
As of writing, the coin is down by 0.6% to $0.5469 per data from CoinMarketCap.
Gamza Khanzadaev
Denys Serhiichuk
Dan Burgin
Alex Dovbnya