The positive summary judgment in the Ripple Labs vs US SEC lawsuit has drawn comment and accolades from top personalities in the Web3.0 world, including Charles Hoskinson, the founder of Cardano. This verdict, delivered by Judge Analisa Torres, is not only a significant win for Ripple Labs but also seen as a victory for the entire cryptocurrency industry.
Charles Hoskinson’s Perspective
Charles Hoskinson, taking to his official Twitter handle, expressed his belief that the verdict is a momentous triumph for the industry as a whole. He shared a screenshot from the court highlighting the crucial part of Judge Torres’ statement. According to her, XRP, as a digital token, does not meet the criteria of the Howey Test to be classified as an investment contract.
In the highlighted portion, Judge Torres carefully examined every aspect of the XRP transactions and concluded that the asset does not qualify as an investment contract. Charles Hoskinson, elated by this decision, described the XRP lawsuit as “one small step for XRP Nation” but “one giant leap for cryptocurrencies.”
Charles Hoskinson TweetThe significance of Charles Hoskinson’s accolade is further amplified by the fact that he has been a vocal critic of the XRP community. His congratulations to the XRP community highlight the positive impact of this verdict on the broader crypto ecosystem. This newfound freedom to commend the XRP community is a result of a recent settlement that Hoskinson reached, signaling his willingness to set aside differences and work together to fuel innovation in the industry.
Implications for Cardano
While the Ripple vs SEC lawsuit is not entirely concluded, the re-classification of XRP as a digital token holds promising implications for Cardano. This change can potentially deter any future regulatory crackdown on Cardano by the market regulator.
Previously, the Securities and Exchange Commission classified ADA, the native cryptocurrency of Cardano, as an investment contract when it sued Coinbase and Binance exchanges. Although the regulator has not directly targeted Hoskinson or Input Output Global regarding Cardano’s status, the association with an investment contract has led to delistings on various trading platforms.
Robinhood, Bakkt, and eToro are among the exchanges that have chosen to delist Cardano. If this trend continues unchecked, it could affect the liquidity and availability of Cardano in significant markets worldwide.
The positive summary judgment in the Ripple Labs vs US SEC lawsuit has received widespread praise, with Charles Hoskinson, the founder of Cardano, commending the verdict. Judge Analisa Torres’ determination that XRP is not an investment contract marks a significant milestone for the cryptocurrency industry. Furthermore, this outcome has promising implications for Cardano, potentially safeguarding it from regulatory crackdowns in the future. As the industry continues to evolve, such legal decisions play a crucial role in shaping the trajectory of cryptocurrencies and their recognition as distinct digital assets.