Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Ripple’s XRP Ruling a ‘Milestone Win’ for Crypto Industry, Says J.P. Morgan

Ripple’s XRP Ruling a ‘Milestone Win’ for Crypto Industry, Says J.P. Morgan

CoindeskCoindesk2023/07/14 18:13
By:Helene Braun

The fight for regulatory clarity isn’t over yet, however, as the SEC will likely appeal the decision and continue to pursue similar cases in the future, analysts wrote.

The U.S. Southern District Court’s represents a milestone win for the crypto industry and provides legal clarity as to what does and doesn’t represent a security, banking giant J.P. Morgan wrote in a research note Friday.

“Large capital pools have been reticent to engage in the industry with unclear rules of the road, while the related overhang has also slowed innovation, adoption, and just overall crypto ecosystem valuation, in our opinion — accelerating as regulatory actions heated up over the past year,” analysts wrote.

“This ruling is undoubtedly a milestone win for the industry. It provides legal clarity and defense around what does and does not constitute a security, and that overall outcome is in favor of what many in the industry had been arguing,” they continued.

In a , a U.S. judge ruled that Ripple’s XRP token should not be considered a security if sold via an exchange or through programmatic sales.

, underpinning the importance this ruling has for the industry. Bitcoin () gained 3.6% on Thursday before retreating about 1.4% on Friday.

While Ripple’s win is certainly positive, J.P. Morgan also noted that this isn’t the end of the regulatory fight for the crypto industry, as the SEC can appeal the ruling and will also likely continue to pursue similar cases in the future.

“We do believe the industry has now established stronger ground for the time being which could affect ongoing cases, and also the pace of further litigation, but at a high level, we do not think the regulatory overhang simply disappears, it just lessens,” the note stated.

There are still many unanswered legal questions for the industry to operate to its full potential, the analysts continued, which is why it’s important to hear the tone and developments from lawmakers and regulators in Washington D.C.

193

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

VIPBitget VIP Weekly Research Insights

Last week, Vitalik Buterin and CZ hosted the DeSci (Decentralized Science) conference at Devcon, where Vitalik unveiled the first DeSci product. CZ also expressed ambitions to see 1000 DeSci products next year, sparking widespread attention to the DeSci concept across the industry. Key speculative projects, RIF and URO, each surpassed a market cap of $100 million. As the sector continues to grow, DeSci remains an area worth close attention.

Bitget2024/11/22 06:24

As Bitcoin Hits $100,000, Analyst il Capo Still Not Convinced: 5 Reasons Why

As Bitcoin races from record to record, analyst il Capo urged his followers to be careful in a message he published.

Bitcoinsistemi2024/11/21 22:22