EMCD CEO Michael Jerlis spoke out about the completion of the case between Ripple and SEC

The founder of EMCD Michael Jerlis appreciated the completion of the City of Securities and Exchange Commission (SEC) against Ripple, and his potential influence on the global cryptocurrency sector. The expert noted that this case turned out to be indicative and this may become the basis for the legal determination of the status of tokens in the future.

Jerlis recalled that the American court recognized XRP as a goods, not a security. According to the expert, given that precedent law is in force in the United States, it can be said: this case will become the basis for further revision of the law. It will help in the final definition of many digital tokens as goods, not securities.

“In fact, this is a serious and important step for the crypto market, since in the case of the SEC victory for checks and fines could get such issuers as Ethereum And Solana. Nevertheless, Ripple lawyers were able to prove: tokens have all the features of the goods, not a security, ”Jerlis emphasized.

The specialist believes that other states can take this case as the basis for the legal determination of tokens in their countries. This will lead to a simplification of the adoption of cryptocurrencies, accelerate the mass adaptation of digital currencies and allow business to develop and release its own virtual assets without fear of persecution by regulatory authorities.

Recall that the US Securities and Exchange Commission (SEC) initiated a trial against Ripple in December 2020. The regulator accused the developers of the sale of XRP tokens as unregistered securities. According to the supervisory authority, Ripple Labs illegally attracted $ 1.3 billion, selling XRP investors without proper disclosure of information.

After filing a lawsuit Price XRP She fell sharply, since large cryptocurrency exchanges, including Coinbase, suspended its trade due to uncertainty. This led to a decrease in token liquidity and a significant weakening of market positions. In 2023, the court made a partial decision in favor of Ripple. A few days ago, the company and the regulator agreed on a peace agreement and payment of a fine.

Author

Peter Ivanov