2023-10-13 00:00 |
Judge Analisa Torres’ ruling in favor of Ripple against the US Securities and Exchange Commission (SEC) has had several impacts on XRP by extension. Highlighting one of them, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty mentioned how the token stands out in the US because of the court’s decision.
XRP’s Unique Status Following Court’s RulingIn an interview with CNBC, Alderoty noted that XRP had gained much-needed clarity in the US following the court’s decision on July 13. Also, XRP is now “uniquely classified” as a non-security in the US.
On July 13, Judge Torres ruled that XRP wasn’t a security and that Ripple’s XRP programmatic sales and other distributions didn’t constitute investment contracts. Ripple’s President Monica Lang had also spoken about how the ruling provided clarity for the company and opened the door for it to expand its business in the US and globally.
Despite Ripple’s victory against the SEC and XRP gaining a unique status, Alderoty doesn’t believe every crypto company and token should go through the same legal battles it did with the SEC just to gain clarity. As such, he emphasized that there is still the need for a “rational regulatory framework.”
Although he recognizes the efforts of some policymakers taking the lead with some rational regulatory framework proposals, Alderoty isn’t optimistic about anything materializing in this Congress or the next one either.
Reason For Lack Of Regulatory ClarityDuring the interview, Alderoty also noted that the crypto industry in the US lacked direction because “politics and power” have been elevated over sound policy. According to him, several agencies are tussling over who gets to regulate the industry rather than focusing on the right regulatory policy, which, in his opinion, should be licensing.
He alluded to other countries like Singapore, the United Kingdom, Dubai, Brazil, Australia, and Japan. He stated that regulators in these countries aren’t looking to push out the innovation but rather encourage stakeholders to abide by their “rigorous regulatory regime.” For instance, the Monetary Authority of Singapore (MAS) requires that Virtual Asset Service Providers (VASPs) acquire a license before operating in the country.
Interestingly, Ripple’s subsidiary in Singapore recently secured a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). The license will allow Ripple to provide regulated digital payment token services in Singapore.
It is expected that Ripple will begin to enjoy similar success that it has enjoyed overseas in the US. In an earlier interview, Alderoty revealed to CNBC that Ripple could potentially begin talks with US financial firms about adopting Ripple’s technology for processing cross-border transactions following Judge Torres’ ruling.
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