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Ripple ruling sparks debate over XRP's classification as a commodity

EditorNikhilesh Pawar
Published 14/11/2023, 03:42 am
© Reuters.
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NEW YORK - The recent verdict in the SEC v. Ripple case has ignited a heated debate between members of the XRP community and proponents of Bitcoin, with interpretations of the ruling's implications for XRP's asset classification at the center of the controversy.

On Sunday, a prominent figure known as ScamDaddy critiqued Judge Analisa Torres' decision for its lack of clarity on XRP's asset class. In contrast, Bill Morgan, an active voice in the XRP community, suggested that Judge Torres may have implicitly viewed XRP as a commodity. This interpretation was met with skepticism from ScamDaddy, who pointed to an excerpt from the ruling to support his position that the judge did not categorize XRP as such.

Today, Morgan highlighted a key aspect of Judge Torres' summary judgment that differentiated between Ripple's institutional sales, which were treated as unregistered securities offerings, and the underlying XRP asset itself. Morgan argued that this distinction could serve as a counterpoint to Bitcoin enthusiasts who often label all non-Bitcoin assets as securities.

The debate underscores the ongoing uncertainty and discussions surrounding cryptocurrency classifications in regulatory contexts. While the SEC continues to pursue cases against various crypto entities, the implications of such rulings are closely watched by investors and participants in the crypto market for indications of how different digital assets might be treated under U.S. securities laws.

This legal distinction has become a pivotal talking point within the cryptocurrency community as it could influence future regulatory actions and market perceptions. As both sides present their arguments, observers await further clarification on how regulators will ultimately define and categorize digital assets like XRP.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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