Ripple’s CTO David Schwartz highlights the significance of the SEC v. Ripple ruling, saying XRP and Bitcoin are the only digital assets with regulatory clarity.
David Schwartz, the Chief Technology Officer (CTO) at Ripple, has highlighted the significance of Judge Analisa Torres’ decision in the SEC lawsuit.
Recall that Judge Torres released the highly-anticipated summary judgment for the SEC v. Ripple lawsuit on July 14. Notably, the ruling saw each party secure a partial victory.
While the court ruled that Ripple’s sale of XRP to institutional investors violated securities law, she found that the company’s programmatic sales and other distributions of the coin are not investment contracts. Furthermore, Judge Torres also declared that XRP in and of itself is not a security.
XRP & BTC Are Only Digital Assets With Regulatory Clarity
Although Schwartz has previously commented on the ruling, he recently took out time to weigh in on the significance of the ruling for XRP.
During his recent keynote address at the Apex event in Amsterdam, Schwartz said that other than Bitcoin, XRP is now the only digital asset with regulatory clarity in the United States.
Notably, the SEC has always stated that Bitcoin is out of its regulatory purview. The commission has made this known in statements issued by its chair, Gary Gensler.
Per the SEC, Bitcoin is a non-security due to its decentralized nature. Moreover, BTC holders do not expect to make gains by relying on the efforts of Bitcoin developers.
Court Gives XRP Clarity
While Gensler has openly stated that Bitcoin is out of the SEC’s purview, the regulator has refused to provide regulatory clarity for other crypto assets.
For Ripple, the SEC lawsuit has always been about getting clarity for XRP. Interestingly, Ripple achieved its desire after Judge Torres declared XRP as a non-security.
SEC Lawsuit – A Dark Time For Ripple
It is worth noting that the SEC v. Ripple’s legal battle has lasted nearly three years. Consequently, the company said it has already spent over $100 million in legal fees defending the SEC’s case.
Per Schwartz, the two-and-a-half-year legal battle was a dark time for Ripple.
“That was an incredibly difficult two and a half years that was a kind of a little bit of a dark time for us,” he said.
Aside from the funds spent defending the case, multiple US-based businesses, including Mastercard, ended their partnership with Ripple.
Additionally, top-tier exchanges in the United States, including Coinbase and Kraken, were prompted to delist XRP. With XRP receiving clarity, these exchanges have now relisted the coin.
Ripple CTO Shares Other XRPL-Related Updates
Meanwhile, Schwartz commented on other interesting upgrades that aim to propel the growth of the XRP Ledger (XRPL).
Some of the upgrades Schwartz mentioned include the introduction of Automated Market Maker (AMM) and Decentralized Identity solutions to the leading blockchain.
He also mentioned that Ripple will play a significant role in improving XRPL’s overall performance and scalability.