Ripple’s latest quarterly report focuses on the ruling in its lawsuit with the U.S. Securities and Exchange Commission, which was favorable for XRP. This will also be relevant for other cryptocurrencies, Ripple said.
For years, Ripple (XRP) has published quarterly reports, which are usually quite numbers-heavy. In the latest quarterly report for the period April, May and June 2023, however, Ripple already emphasizes in the introduction to proceed differently this time and to focus on the “landmark ruling” of July 13. Because on that day, after two and a half years of litigation, a court in New York largely rebuffed the U.S. Securities and Exchange Commission (SEC) with the demand to classify XRP as “securities” and to regulate it strictly.
Ripple now states in its analysis of the ruling that XRP would at best fall under SEC jurisdiction if a written investment contract was also entered into when XRP was sold. However, the decision is sometimes misinterpreted in the direction that XRP itself can constitute a security. The ruling explicitly states, “XRP as a digital token is not in itself (…) an investment contract.” This should also make it clear for other cryptocurrencies that they do not normally fall into the category of securities, according to Ripple.
Ripple now also wants to clear up the “misconception” that the court ruling will disrupt its business. On the contrary, the judge had even emphasized that regulators from countries such as Japan, Singapore, Switzerland, the United Kingdom and the United Arab Emirates do not consider XRP a security. This is important for Ripple because XRP’s original concept is to serve as a bridge currency for international money transfers.
XRP on the rise
Ripple points out with some pride that crypto exchanges in the U.S., such as Coinbase, Kraken and Bitstamp, reintroduced XRP to their offerings shortly after the ruling. On base, XRP had then repeatedly been the altcoin causing the third highest trading volume globally (after Bitcoin (BTC) and Ethereum (ETH) ). In short, XRP is making a comeback among the top global cryptocurrencies after the mammoth process that had weighed on Ripple since December 2020.
Conclusion: Ripple is optimistic about the future for XRP
Ripple doesn’t mention that the SEC is hinting at filing an appeal. Observers say even in such a case, XRP’s legal status will remain unchanged for at least the next two years. And Ripple has another confidence-building message in store: its often-criticized XRP reserves remain largely unchanged, amounting to just under 42 percent of the total holdings of all XRP. But Ripple is sticking to its self-imposed rules of the game and refraining from major XRP sales on the open market. Each month, 1 billion XRP worth the equivalent of about $665 million currently are released from reserves to Ripple – but the crypto company has moved to divert the majority of those transfers back into reserves. Thus, after the nerve-racking SEC court case, Ripple is now confidently standing up for XRP again and, according to its own statements, is already on the lookout for customers in the US.
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