In a monumental verdict, a district court in New York has ruled in favor of Ripple Labs in the case brought up by the U.S. Securities and Exchange Commission (SEC). Issued by Judge Analisa Torres on July 13, the judgement declares that XRP is not a security. This implies that the company’s programmatic sales on digital asset exchanges have been deemed legal.
As the news broke, the value of XRP surged, hitting a significant high of $0.93, with its market cap ballooning by $21.2 billion. The ruling has brought a wave of re-listing activity with Coinbase, Kraken, and iTrustCapital making XRP available for trading on their platforms. It’s crucial for the wider crypto community to note that the judgement is partial and does not set a precedent, which still leaves Ripple Labs on shaky ground.
Meanwhile, Alex Mashinsky, the former CEO of Celsius Network, a bankrupt crypto lending platform, has been arrested on criminal charges. Authorities slapped Mashinsky with charges of securities fraud, commodities fraud, and wire fraud, among other allegations. Surprisingly, the company has also been fined $4.7 billion by the Federal Trade Commission for marketing the platform as a safe haven for cryptocurrencies, while allegedly misappropriating consumers’ assets.
Overseas, London-based Jacobi Asset Management is preparing for the debut of Europe’s first spot Bitcoin ETF after a year-long delay, despite the market turbulence. In equally exciting news, a Bitcoin futures contract was welcomed in Argentina, thanks to Matba Rofex.
Back in the U.S., Binance appears to be dealing with internal issues as the global headcount has been slashed by approximately 1,000 employees, causing substantial disruption in customer services particularly in India. This decision, according to Binance, is a move towards reallocating resources amidst a US regulatory crackdown.
These events underscore the juxtaposed realities of the crypto world: enormous potential juxtaposed with ongoing regulatory complications and internal tumult. As the XRP case and the Celsius debacle exemplify, the legal landscape for cryptocurrencies remains a difficult terrain to traverse. Yet, breakthroughs like the Bitcoin ETF in Europe and Argentina indicate a steadily growing acceptance and mainstream adoption of cryptocurrencies. The cautious optimism and restrained celebration in relation to XRP suggests that, while the crypto world keeps on spinning, it needs regulatory certainty more than ever.
Source: Cointelegraph
