Ripple, the company behind XRP, prevailed In its legal battle against the US Securities and Exchange Commission (SEC) last week, it caused a surge of excitement in the cryptocurrency industry. The Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple, accusing the payments and technology company of selling XRP tokens that look like securities to investors.
Judge Annalisa Torres ruled in favor of Ripple, declaring that XRP is not a security when it is sold to the public. According to JPMorgan analysts, this recent court ruling also appears to be a win for Coinbase in the recent lawsuit filed by the Securities and Exchange Commission.
JPMorgan sees Ripple’s win as a positive, but Coinbase still faces challenges
In a JPMorgan research note, equity analysts — led by Kenneth Worthington — claimed that Ripple’s victory over the SEC could be a win for Coinbase. On June 6, 2023, the SEC filed a lawsuit against Coinbase, alleging that the exchange was “operating as an unregistered securities exchange.”
The SEC claims that the exchange acted as a middleman for trading 13 crypto assets, such as Cardano, Polygon, and Solana, which it should have been. registered as securities. However, the regulator’s position appears to be shaky after the latest XRP decision.
“If the Ripple case persists, it will be difficult for the SEC to prove that the 13 (tokens) are securities and that Coinbase is an unregistered securities exchange, thus exempting it from certain regulatory requirements and future licenses,” the JPMorgan analysts said.
Analysts believe that Ripple’s win does not completely rule out the SEC’s case against Coinbase. This is because the crypto exchange has also been sued for failing to register an offering and selling unregistered securities via its “staking-as-a-service” program, they said.
“Furthermore, the SEC could appeal Ripple’s decision which adds uncertainty about the implications of Ripple’s ruling,” the JPMorgan analysts added.
Ripple CEO: A SEC appeal could take years
in Bloomberg interviewBrad Garlinghouse, CEO of Ripple, made comments indicating that it may take some time before the SEC can appeal the latest court ruling.
“In terms of law, the law of the land right now is that XRP is not a security. Until the SEC has a chance to file an appeal, which will take years, frankly, we are very optimistic,” said the Ripple CEO.
In this interview, Garlinghouse also directly criticized the SEC’s tactics against the cryptocurrency industry, calling the financial regulator a “bully.” He claims that the committee is fanning confusion in order to strengthen itself against the cryptocurrency industry.
XRPUSD trading at $0.74833 | Source: XRPUSD chart from TradingView
Featured image from Coinbase, chart from TradingView