On April 6, the United States Securities and Exchange Commission (SEC) declared that XRP, the digital currency created by Ripple Labs, is not a security. The decision was made public by John Deaton, a lawyer representing over 11,000 XRP investors who are seeking to intervene in the SEC’s lawsuit against Ripple.
Deaton shared the news on Twitter, stating that he received a letter from the SEC’s Deputy General Counsel, expressing the regulator’s position on XRP’s status. This development is significant for Ripple and its investors, as it clarifies the SEC’s stance on whether XRP should be classified as a security under US law.
The SEC’s decision comes after months of legal battles between the regulatory agency and Ripple Labs. In December 2020, the SEC filed a lawsuit accusing Ripple of conducting an unregistered securities offering through the sale of XRP. The case has been closely watched by the cryptocurrency community, as it could set a precedent for how digital assets are regulated in the United States.
Despite the SEC’s declaration that XRP is not a security, the lawsuit against Ripple is still ongoing. The judge overseeing the case has allowed Deaton and his clients to intervene, giving them a voice in the legal proceedings. This marks a significant moment in the lawsuit, as the XRP investors will now have the opportunity to present their arguments and defend their interests in court.
Overall, the SEC’s recent statement regarding XRP’s status is a positive development for Ripple and its community. It provides clarity on the regulatory uncertainty surrounding XRP and could potentially pave the way for a resolution in the ongoing legal battle. As the case continues to unfold, all eyes will be on the outcome and its implications for the broader cryptocurrency industry.
