CEX.IO, a prominent digital asset exchange, has announced the relisting of Ripple-affiliated XRP tokens for its U.S.-based users, allowing them to buy, sell, convert, deposit, and withdraw XRP across its product ecosystem. This move comes in the wake of a pivotal U.S. court ruling that clarified XRP's legal status, stating that it is not necessarily a security. The decision has significantly boosted the confidence of cryptocurrency exchanges to relist XRP, with Kraken, Crypto.com, Coinbase, and Bitstamp among the first to do so. As a result, XRP's price surged to a year-to-date high of $0.938, distinguishing it with a unique regulatory status in the U.S. cryptocurrency market, shared only with Bitcoin.
Meanwhile, during the Ripple Swell conference in Dubai, Brad Garlinghouse, the CEO of Ripple, criticized the U.S. Securities and Exchange Commission (SEC) for losing sight of its mission to protect investors. He questioned the SEC's motives in its ongoing legal battle with Ripple, which began with allegations of a $1.3 billion securities fraud. Garlinghouse highlighted that a judge ruled that XRP is not a security and that the SEC dropped charges against him and another executive. He expressed hope that these developments would lead to a more favorable regulatory environment for the cryptocurrency industry in the United States, advocating for federal laws governing digital currencies introduced by Congress and a shift away from the SEC's current enforcement-oriented approach.
CEX.IO Relists Ripple's XRP Token, Marking a Major Comeback for U.S. Users
In a significant development for the world of cryptocurrency, CEX.IO, a prominent digital asset exchange, made headlines on Wednesday by announcing the relisting of the Ripple-affiliated XRP token for its U.S.-based users. This move has opened up new opportunities for American cryptocurrency enthusiasts, allowing them to buy, sell, convert, deposit, and withdraw XRP across CEX.IO's extensive product ecosystem.
The resurgence of XRP on major exchanges marks a remarkable comeback for the native token of the Ripple protocol. This resurgence can be traced back to a pivotal U.S. court ruling earlier this year that provided much-needed clarity on XRP's legal status. Federal District Judge Analisa Torres delivered the crucial verdict, stating that XRP "is not necessarily a security on its face," except when sold to raise funds from institutions.
Judge Torres' decision was particularly significant as it did not directly concern the secondary sales of XRP. However, its implications resonated throughout the cryptocurrency industry, emboldening leading exchanges to re-list XRP. Among the first to relist XRP were Kraken, Crypto.com, Coinbase, and Bitstamp, all of which recognized the newfound legal certainty surrounding the token.
The ripple effect of these relistings was felt in the cryptocurrency market as XRP surged in value. The XRP price experienced a remarkable rally, reaching a year-to-date high of $0.938. This resurgence has breathed new life into the once-controversial token, which had faced regulatory challenges and market turbulence in the past.
Stuart Alderoty, Ripple's top lawyer, has been a vocal advocate for XRP's distinctive status in the U.S. cryptocurrency market. He emphasized that this unique regulatory position was solidified by the court ruling, which classified secondary sales of XRP as non-securities. This classification sets XRP apart from other digital tokens that have yet to receive such regulatory clarity.
One of the key takeaways from the court ruling is the recognition of XRP as a cryptocurrency with inherent utility, akin to Bitcoin. While it does not possess the same level of decentralization as Bitcoin, XRP's primary function is to facilitate cross-border payments and liquidity within the Ripple network. This utility-driven approach played a pivotal role in the court's determination that XRP should not be classified as a security by default.
The legal developments surrounding XRP are indicative of a broader trend within the cryptocurrency industry, where regulatory clarity is becoming increasingly sought after and valued. Cryptocurrency exchanges, like CEX.IO, are keen to offer their users tokens that have a clear legal status, reducing uncertainty and risk for both traders and investors.
CEX.IO's decision to relist XRP for its U.S. customers underscores the exchange's commitment to providing a diverse range of digital assets while adhering to regulatory guidelines. This relisting is expected to further boost XRP's adoption and liquidity in the American market, offering cryptocurrency enthusiasts more opportunities to participate in the evolving landscape of digital finance.
Ripple CEO Criticizes SEC's Regulatory Approach at Ripple Swell Conference in Dubai
Brad Garlinghouse, the CEO of the blockchain company Ripple, did not mince words when speaking about the U.S. Securities and Exchange Commission (SEC) during the Ripple Swell conference in Dubai. In a candid interview with CNBC's Dan Murphy, Garlinghouse expressed his belief that the SEC has lost sight of its core mission to protect investors and questioned who the agency is truly safeguarding in its regulatory actions.
"I think the SEC, in my opinion, has lost sight of their mission to protect investors. And the question is, who are they protecting in this journey?" Garlinghouse stated during the interview. The SEC did not provide an immediate response when contacted by CNBC.
The rift between Ripple and the SEC began in 2020 when the regulatory body accused Ripple and its executives of engaging in a $1.3 billion securities fraud scheme through the sale of XRP to retail investors. The SEC alleged that Ripple failed to properly register an ongoing offer and sale of billions of XRP tokens to investors, thereby depriving them of necessary disclosures about XRP and Ripple's business operations.
In a significant turn of events, in July, a judge ruled that XRP itself is not a security, marking a pivotal victory for Ripple. Following this decision, the SEC's request for an interlocutory appeal was denied. Then, in October, the SEC dropped its securities law violation charges against Brad Garlinghouse and Ripple executive Chris Larsen.
The case now enters the remedies discovery process, with the SEC granted 90 days from Nov. 9 to conduct remedies-related discovery, as per a proposed schedule submitted by the SEC.
Brad Garlinghouse expressed optimism about the implications of these developments for the broader cryptocurrency industry. He believes that the SEC's actions being curtailed could lead to a more conducive environment for the industry to thrive in the United States.
"I think it is a positive step for the industry, not just for Ripple, not just for Chris and Brad, but for the whole industry, that the SEC has been put in check in the United States. And I'm hopeful this will be a thawing of the permafrost in the United States for really seeing an amazing industry that has immense potential to thrive in the largest economy in the world," Garlinghouse told CNBC.
Furthermore, Garlinghouse hopes that the United States will transition from a situation where cryptocurrency regulation is determined through litigation to a scenario where federal laws governing digital currencies are introduced by Congress. He pointed out the need for a change in the SEC's regulatory approach, which has been heavily reliant on enforcement actions and lawsuits.
"One of the things that people talk about is, one of the definitions of insanity is doing the same thing over and over again, and thinking you'll get a different outcome, the SEC is doing the same thing over and over again. And they think, I guess, they're gonna get a different outcome at some point," Garlinghouse continued.
He also drew parallels with a recent legal case involving Grayscale, a digital asset manager, and the SEC's rejection of their application to create a bitcoin exchange-traded fund (ETF). An appeals court ruling in that case stated that the SEC had acted arbitrarily and capriciously in its decision.
"Generally, judges tend to be pretty down the middle and try to not be dramatic — those are damning words. So I think at some point, the SEC has to step back and realize that their approach of regulation through enforcement, let's just bring lawsuits, that has to break," Garlinghouse emphasized.
The ongoing Ripple-SEC legal battle has undoubtedly sparked discussions about the regulatory landscape for cryptocurrencies in the United States. As the case progresses, it remains to be seen how it will shape the future of cryptocurrency regulation in the country.
XRP followed the positive trend seen across the overall cryptocurrency market, and posted a 24-hour gain greater than 3%. This resulted in the remittance token changing hands at $0.650993 at press time. However, the 24-hour gain was not enough to flip XRP’s weekly performance out of the red, as it remained at -5.79%.
Price chart for XRP (Source: CoinStats)
The cryptocurrency was trading closer to its 24-hour high, which it set at $0.651529, than its low for the same period that stood at $0.627995. XRP was, however, outperformed by the market leader Bitcoin (BTC) throughout the past day of trading, and was down 1.78% against BTC.