In an interesting turn of events, Ripple, the renowned blockchain-based digital payment network, has sought a crypto license in the UK and Ireland, following its partial triumph over the US Securities and Exchange Commission. Ripple’s managing director for the UK & Europe, Sendi Young, revealed the recent application for crypto asset firm registration to the UK’s FCA and a payment institution license in Ireland.
To offer a bit of context, a US court recently leaned in Ripple’s favour in an institutional lawsuit led by the SEC, averring that XRP sales on exchanges are not tantamount to an investment contract. This ruling, emanating from the District Court for the Southern District of New York, outlined that XRP’s “offer and sale on digital asset exchanges did not amount to offers and sales of investment contracts.” Nevertheless, the federal judge did maintain that XRP counts as a security when sold to institutional investors, according to the guidelines set in the Howey Test.
Providing her perspective, Young proclaimed the decision as a “huge win” and a positive event for the company’s growth within the US. However, some have raised eyebrows, probing whether Ripple’s victory is really as resounding as it seems. Preston Byrne, a partner at Brown Rudnick and a recognised crypto entrepreneur, stated that the SEC is presently reviewing the decision and suggested it may challenge the ruling.
Furthering this, others have proposed that the summary judgment may have a weak foundation, questioning whether it will result in a beneficial shift in the SEC’s treatment of the crypto industry. Joe Castelluccio, who leads law firm Mayer Brown’s Fintech group, suggested that the SEC will likely raise the portions of the court decision that augment their views on cryptos and tokens as securities.
In fairness, Ripple has been making strides in the UK and Europe, with an almost 75% increase in UK and European employees over the last 18 months. Now possessing more than 100 of its roughly 900 global employees in London, Dublin, and Reykjavik, Ripple is clearly making substantial investments to ensure its persistent growth in these regions. Nonetheless, Ripple will likely have to continue navigating the murky waters of the crypto regulatory environment to maintain its position.
Source: Cryptonews
