XRP court ruling marks milestone, but new crypto law could take years

The recent court ruling that Ripple’s XRP (XRP) token is not considered a security when sold on digital asset exchanges has sparked a wave of positive sentiment across the cryptocurrency ecosystem. 

Stuart Alderoty, chief legal officer at Ripple, told Cointelegraph that he believes the most important part of this ruling is that the court unequivocally said XRP is not, in and of itself, a security. Given this, Alderoty noted that the XRP ruling is now a matter of law and not up for trial.

“Additionally, other findings that are not subject to trial include the following: sales on exchanges are not securities, sales by executives are not securities, and other XRP distributions to developers, charities and employees are not securities. The court’s ruling can now also be used by others in the SEC’s crosshairs,” he said.

We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.

— Brad Garlinghouse (@bgarlinghouse) July 13, 2023

Ruling doesn’t ensure clear regulations

While the XRP court ruling marks a significant milestone for the entire crypto industry, Alderoty noted that he hopes Congress will use the ruling to create a clear regulatory framework moving forward. “There will be further court proceedings per the court’s order, and we’re evaluating next steps,” he said.

The United States Securities and Exchange Commission (SEC) can appeal the XRP ruling. Lewis Cohen, co-founder of DLx Law — a law firm focusing on crypto assets and blockchain technology — told Cointelegraph that the SEC could “reverse” this ruling by appealing it once it becomes final. “They can also bring similar actions in other federal districts seeking alternative outcomes,” he said.

A blog post by the law firm Holland & Knight elaborates on this notion. The firm states that the “court’s grant of summary judgment on certain aspects of the case signal some measure of finality with regard to the SEC’s jurisdictional reach (or lack thereof), an appeal would be deemed interlocutory at this stage, as the court did not dispose of the case in its entirety.”

Yet the post further notes that while “interlocutory appeals are permissible, they are rarely granted in practice.” So, it could take months or even years if the SEC decides to appeal the court ruling.

In addition, whether…