Home Altcoins News Ripple Scores Legal Victory as XRP Deemed Not a Security, while Former Celsius CEO Faces Arrest

Ripple Scores Legal Victory as XRP Deemed Not a Security, while Former Celsius CEO Faces Arrest

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Ripple Labs, which is the blockchain technology company behind the XRP cryptocurrency, recently achieved a significant victory in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC). The ruling came as Judge Analisa Torres of the U.S. District Court for the Southern District of New York declared that XRP should not be classified as a security when traded on digital asset exchanges. While this ruling has been celebrated by Ripple and the broader cryptocurrency community, legal experts caution that it may not be the final verdict in the case and that an appeal is still possible. Adding to this, the outcome of this ruling may not directly impact other cases involving cryptocurrencies such as Binance and Coinbase.

The ruling in favor of Ripple Labs has been seen as a blow to the SEC’s regulatory efforts in the cryptocurrency space. It challenges the SEC’s classification of digital assets and raises questions about the agency’s jurisdiction and approach to regulating cryptocurrencies. While the ruling is significant, it is important to note that it is not a binding precedent and may only serve as persuasive guidance for future court cases. Legal experts, including Stephen Palley of law firm Brown Rudnick, have highlighted that the ruling is only “partial” and that it does not completely resolve the legal issues surrounding XRP.

There is also the possibility that the SEC may choose to appeal the ruling, which could lead to further legal proceedings and potential overturning of the judge’s decision. This uncertainty underscores the need for caution when interpreting the implications of the ruling on the broader cryptocurrency industry. Despite the positive outcome for Ripple, the legal battle is far from over as part of the SEC’s case against the company will still proceed to trial.

It’s important to note that the ruling pertains specifically to XRP and its status as a security. It does not directly impact other cryptocurrencies such as Binance’s BNB or Coinbase’s assets, which are also facing scrutiny from the SEC. Each case involving different cryptocurrencies will be evaluated on its own merits, taking into account the specific facts and circumstances surrounding the tokens and their respective issuers.

In a separate development, the former CEO of Celsius, Alex Mashinsky, has reportedly been arrested on charges of fraud. Celsius is a cryptocurrency lending platform that filed for bankruptcy in July 2022. Mashinsky’s arrest follows an investigation into the collapse of the company, with allegations of fraudulent activities and market manipulation.

The troubles for Celsius and Mashinsky began in June 2021 when the platform suddenly suspended withdrawals, triggering investigations by securities regulators from multiple U.S. states. The New York attorney general subsequently sued Mashinsky, accusing him of misleading investors and causing significant financial losses. The recent arrest of Mashinsky further highlights the regulatory challenges and potential legal consequences faced by individuals and companies operating in the cryptocurrency industry.

As the cryptocurrency industry continues to evolve, legal battles and regulatory scrutiny are expected to persist. The ruling in favor of Ripple Labs is a positive development, but it is crucial to approach it with caution and recognize that the legal landscape is complex and subject to change. The final resolution of these cases will surely and greatly shape the regulatory framework surrounding the cryptocurrencies and have implications for the industry as a whole.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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