In a significant development, Ripple Labs, which is behind XRP and Ripple, have tasted the first victory in a court. Still, the two are facing several lawsuits since the digital currency is termed as unregistered security. The ambiguity in classification has obviously helped to win the battle in the court since XRP is not treated as security by legal means. The court cases have forced the virtual asset to remain in hibernation mode on a temporary basis. However, the company has to win other cases to breathe easy.
Legal Proceedings Take Time
The victory for XRP and Ripple suggested that it is not an easy task to brand cryptocurrency as security thus resulting in legal proceedings taking a long time to materialize, cryptodaily.co.uk reported. The virtual currency has initiated steps to enhance its status with its rebranding to XRP from Ripple though it is one of the steps. There are other steps like its shift towards a better decentralization network of the digital coin.
Apart from this, the company is compelled to justify that it is not security on a continuous basis. Whatever may be the arguments put forth by the plaintiffs and defendants, the fact is that Ripple has tasted its first victory. There is no guarantee that this could make other cases to be redundant though the verdict could be considered while dealing with other cases. One of the factors that favor Ripple is that most of the remaining cases are similar and that could give the confidence.
The NASDAQ reacted to say that XRP has finally witnessed some bullish movements in Asian markets after it tasted victory in the American court. The firm is enjoying the rank of third by virtue of market cap in the virtual currency sector. The Northern District of California has given a ruling against a motion to remand against XRP providing much-needed relief to not only the crypto-coin but to the entire sector.
The NASDAQ said, “All of the suits against Ripple, the company, share a similar complaint, and that is that the company worked to increase its XRP token’s value. Meanwhile, Ripple insists that Ripple that company and Ripple’s token, XRP, are independent and two different things.” Some experts might have expected the verdict and could hope that the remaining cases are also settled in favor of the company.
Better Use Values
Any victory in the remaining cases could provide enhanced application of XRP apart from better use values. These factors would enable it to gain some traction and start to offer as a viable investment option once again. At the same time, if the company faces a reversal of fortunes in rest of the cases, it could prove to be a dampener and will drag down sentiments.
The digital currency firm is hoping that the victory in one case could allow the speeding up of other cases to drive a decision. That would mean that the company’s legal battle will come to an end as far as the classification is concerned. In any case, the victory has enabled to start afresh for XRP.