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Many stakeholders in the digital currency ecosystem have always lamented the lack of regulatory clarity for cryptocurrencies in the United States, but the tide appears to be changing. According to an update from Ripple developers with a video commentary from the company’s CTO David Schwartz, XRP is now the only digital asset with regulatory clarity in the United States after Bitcoin (BTC).
This is a significant milestone in an industry that has faced intense regulatory pressure from the U.S. Securities and Exchange Commission (SEC) in recent years. XRP’s non-security status was determined by Judge Analisa Torres in the case between the company and the market regulator.
According to Judge Torres, XRP itself is not a security when sold on secondary marketplaces to retail investors. Despite the fact that the SEC disagrees with this ruling and is actively pursuing an interim appeal against the ruling, the current status is that XRP is not an investment contract.
The clarity about XRP’s status has helped boost confidence in the digital currency. In addition to the asset being re-listed on popular marketplaces such as Binance.US, Coinbase and Kraken, more industry players are now exploring opportunities to leverage Ripple’s remittance technology, which leverages the XRP token.
Riding the waves with Bitcoin
As the first known digital currency, Bitcoin was always happy to be classified as a non-security by SEC executives. The decentralized nature of the coin and the lack of a central body responsible for its updates, like the Ethereum Foundation does for the Ethereum blockchain, have portrayed it as a free virtual currency without any speculation.
With the market regulator recently charging Cardano (ADA), Solana (SOL), and Filecoin (FIL), among others, in its lawsuit against Binance and Coinbase, XRP’s status is now more valued than ever.
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