Roo's All-In Giveaway, $300,000 in Prizes

Ripple’s Partial Win: What It Means for The Crypto Space

Ripple’s Partial Win: What It Means for The Crypto Space

Content provided by various contributors. DYOR.

A well-known San Francisco-based digital coin, Ripple (XRP) has recently reached a huge milestone in the cryptocurrency space. Following the lawsuit, The U.S. court ruled in favor of Ripple, which potentially, sets a new standard for other digital coins.

The Brief History of the Ripple Lawsuit

Initiated in December 2020, Ripple Labs were facing a lawsuit from the U.S. Securities and Exchange Commission, known as SEC, who claimed that the former sold XRP coins as an unregistered securities offering, selling them to investors in the USA and worldwide alike. 

As a result of the lawsuit, the price of the token plummeted on crypto exchanges, with Coinbase taking off the coin from their platform altogether. 

However, with the current resolution of the lawsuit, the course of the coin has changed drastically. As of July 13th, the court confirmed that Ripple Labs did not, in fact, violate federal securities law by launching its XRP token on public cryptocurrency exchanges. Following this decision, the price of the coin skyrocketed – yet, the impact of this legal event transcends the cost of XRP, impacting the entire industry tremendously. 

The Security Dilemma

The main argument of Ripple Labs lay in the decentralized nature of the blockchain, upon which the XRP traded. This means that the company itself didn’t exert any control on their tokens, proving that they’re not a security. The majority of the token sales came from everyday people and small-scale investors. Therefore, only the ones that were directed to hedge funds and big investors can be qualified as a security offering.

That is to say, the court has declared that while institutional token sales violated the law, programmatic sales didn’t. Many have met this decision with skepticism and disapproval, asking “how can a thing be a security in one transaction, but not in another?” 

Regardless, the ruling has decided that the first sale of around $728.9 millions of XRP did qualify as a violation of federal securities law. After all, the company sold investment contracts, as the investors expected that they would generate profit from Ripple’s efforts. 

Yet, the ruling also claims that the average small-scale investor who may have received valuable cryptocurrency help on the basics of crypto investing didn’t expect to receive any profits from Ripple’s work.They may have simply signed up on a public cryptocurrency exchange and purchased the token – with no expectation to profit from the company’s performance. For this reason, the sales that were made to the Programmatic Buyer, which amounted to $757.6 million worth of XRP, were not categorized as a security offering. 

When it comes to Programmatic Sales, the court claims that Ripple’s sales represented “blind bid/ask transactions”, meaning that the buyers didn’t know whether their funds reached Ripple. It further equated the Programmatic Buyer to a secondary market purchaser, buying tokens anonymously via cryptocurrency exchanges. 

The Impact of the Ripple Lawsuit on the Cryptocurrency Space

Many experts see the Ripple resolution as a positive sign in the cryptocurrency space. Some, on the other hand, claim that it’s unsubstantiated and may not extend to the way the SEC approaches the entire industry. The security dilemma, that is, whether the regulatory status of coins qualifies as securities, still concerns many digital assets in the cryptocurrency space. 

Overall, Ripple has received two regulatory statuses for its tokens, which brings even more uncertainty, as to what constitutes a security offering. Experts refer to this phenomenon as “Schrodinger’s Shitcoin”, which assumes that a token qualifies as a security when sold to an institutional investor, however, it doesn’t if it’s sold under the pretense of anonymous investing. 

Truly, the course of the cryptocurrency industry is impossible to determine from the Ripple lawsuit alone, as Congress might change the direction of the lawsuit by reversing it upon appeal. Until then, the industry still struggles with a lack of proper frameworks, which would regulate tokens unanimously and eliminate the involvement of politically-involved the SEC. 

The Future of Cryptocurrency Regulations

Whether tokens are considered a commodity or a security has bothered investors for a long time. However, the current state of cryptocurrency regulations don’t provide a full picture on whether this concern will resolve itself. 

Since there still is a possibility for the decision to get nullified, it’s unclear whether the market should rely on this decision. However, both investors and experts hope that regulations will become more loose, meaning that the cryptocurrency space in the United States will operate upon a laissez-faire model – a liberal regulatory approach that the UK has already adopted. 


Following the Ripple lawsuit, the dilemma on whether cryptocurrencies should be categorized as a commodity or a security still remains an enigma. The financial regulators in the U.S. still can’t come to a unanimous decision, as they can’t agree on whether crypto is a security (similar to stocks and bonds) or a commodity (similar to raw materials or other goods). 

Bitcoin live price
price change

One way or another, the emergence of regulations is inevitable, and Ripple’s favorable ruling might even be ephemeral. While it’s still unclear what the Congress will decide on the lawsuit, cryptocurrencies still remain a peculiar form of investing, where the public is always skeptical about the future of digital assets, whether it’s their use cases or legitimacy. 

Read more from author

Editor's picks

Best Crypto Day Trading Strategies

Range Trading Description: A cryptocurrency will often trade for a long time inside a certain range. For instance, Bitcoin traded between $8,601.40 and $10,210 for 30 days. Cryptomarket caps are small enough to be manipulated by a single big mover. If you notice these patterns, you can take advantage of them. How to Use: Pay attention to overbought and oversold zones. Overbought means buyers have saturated their needs, and the stock will probably sell off; oversold means the opposite. Chart…

How to Transfer Crypto With No Fees or With Minimum Fees

Cryptocurrency has revolutionized how we transact money, but one of the challenges many users face is the associated fees. Here's a guide to help you minimize or even avoid these fees! Understanding the Basics of Crypto Transactions Cost: Most cryptocurrencies charge transaction fees to compensate miners who confirm transactions and maintain the blockchain. These fees can vary based on the currency's design, current transaction volumes, transfer speeds, and the number of individual transactions bundled into your transfer. Some third-party services…

Ares NFT Tokenomics: Showcasing the Rarity Tiers and Investment Opportunities

More than ever before, people are getting curious about the potential of NFTs. Many projects are launching every day. But it's important to invest in projects that have a real-world impact.  Ares NFT is a unique project in the NFT space that will change people's lives and offer real-world value to people. It membership is divided into Rare, Super-rare, Legendary, and Ultimate. This article reveals the depth of Ares NFT tokenomics, shedding light on the investment possibilities that await young…

Top 3 Sniper Bots That Will Change How You Trade on DeFi

Recently, there has been a surge in the popularity of DeFi and Telegram trading bots. These bots have become popular among traders looking to navigate the volatile cryptocurrency market and simplify their trading experience. By blending automation with comprehensive data and insights, trading bots assist traders in making well-informed decisions and optimizing their strategies. These bots have garnered attention from both retail investors and seasoned traders due to their accessibility and user-friendliness, all while offering advanced functionalities. They aid in…

Best DeFi Lending Platforms With the Best Rates for 2023

Introduction to DeFi Lending Platforms Decentralized Finance (DeFi) has revolutionized the traditional financial system, offering a more transparent, efficient, and inclusive alternative. Among the myriad DeFi applications, lending platforms have emerged as a cornerstone, enabling users to lend and borrow assets without intermediaries. How to Use DeFi Lending Platforms Choose a Platform: Research and select a platform that aligns with your needs. Connect a Wallet: Link a cryptocurrency wallet like MetaMask or Trust Wallet. Deposit Assets: Transfer your crypto assets…

Blockchain in Healthcare – Use Cases in Digital Health

The digital transformation of the healthcare sector has been nothing short of revolutionary. The industry has embraced technology from telemedicine to electronic health records to improve patient outcomes and streamline operations. One of the most promising technologies to emerge in recent years is blockchain. Originally designed for digital currencies like Bitcoin, blockchain's potential applications in healthcare are vast and varied. In this article, we will delve into blockchain use cases in digital health, highlighting its transformative potential. Introduction to Blockchain…

How Blockchain Technology Can Be Used In Education

Blockchain technology, most commonly associated with cryptocurrencies like Bitcoin, has been making waves in various industries due to its decentralized nature and the ability to store data in blocks linked chronologically. This makes tracing data's origins and verifying its authenticity relatively straightforward. One industry where blockchain is beginning to make an impact is education. 1. Blockchain for Student Records: The use of blockchain in education is primarily for storing and sharing academic records and credentials. The number of student records…

How to Easily Earn Crypto Rewards

The cryptocurrency world has evolved rapidly, offering numerous opportunities for individuals to earn rewards. As the crypto economy grows, there are more ways than ever to earn rewards for holding crypto, learning about crypto, or interacting with decentralized finance (DeFi) apps. This article delves into various methods to earn crypto rewards easily. 1. Staking: Staking is a process where you deposit and lock up a certain amount of cryptocurrency to support the operations of a blockchain network. In return, you…

Cryptocurrency in Turkey: A Rising Trend – 50% of People Are Using it

Turkey, a nation straddling Eastern Europe and Western Asia, has seen a significant rise in cryptocurrency adoption in recent years. While exact figures may vary - and some put it at 50%, there's no denying that the Turkish population's interest and investment in digital currencies have surged. Why the Surge in Cryptocurrency Ownership? Economic Instability: Turkey has faced economic challenges, including inflation and currency devaluation. Many Turks have turned to cryptocurrencies as a hedge against the lira's depreciation, viewing digital…