According to J.P. Morgan, XRP is a “Milestone Win” for the Crypto Industry
Experts in the field have speculated that the SEC may file an appeal and continue investigating similar cases in the future in an attempt to clarify the law.
The U.S. Southern District Court’s verdict in favour of Ripple, a payments network, is a major victory for the cryptocurrency sector as a whole. The judgement clarifies what constitutes security and what does not.
Morgan, a major bank, published a research note on the subject on Friday. Analysts wrote that because governmental moves have been picking up speed in the past year, “large capital pools have been reluctant to get involved in the industry without clear rules of the road.”
This reluctance has slowed innovation, adoption, and valuation of the entire crypto ecosystem. This decision is a huge victory for the business community.
They concluded that the outcome was positive because “it offers legal clarity and protection around what is and isn’t a security,” which was something that many in the industry had been pushing for.
A U.S. court decided on Thursday that Ripple’s XRP coin is not a security whether it is traded on an exchange or via automated programs. The significance of this verdict in the crypto business was underscored by a price rally after the announcement.
On Thursday, Bitcoin (BTC) appreciated by 3.6%, but it lost over 1.4% of its value on Friday. Even while this is good news for Ripple, J.P. Morgan pointed out that the SEC may still appeal the verdict and will likely continue to pursue similar cases in the future, so the regulatory battle for the crypto sector is far from over.
“We do not think the regulatory burden simply disappear, only reduces,” the note said, adding that “we do feel the sector is on a firmer footing for the time being which might affect existing lawsuits, and also the speed of additional litigation.”