XRP ruling is ‘groundbreaking’, weakening SEC’s stance on crypto assets: Bernstein | CoinDesk JAPAN | Coin Desk Japan

The U.S. Federal District Court’s ruling that Ripple’s XRP (XRP) should not be considered securities when sold via cryptocurrency exchanges or programs is a landmark for cryptocurrencies. investment firm Bernstein said in a research report Wednesday.

Bernstein also points out that the court ruled that the sale of XRP to institutional investors violated securities laws. Still, this is a significant ruling that removes an overhang for holders of XRP and the tokens that buy it through exchanges, the report said.

Analysts, led by Gautam Chhugani, said the ruling would reduce “the overhang of securities over tokens sold on exchanges” and that “for all tokens sold on secondary platforms. It will be a big relief,” he wrote.

The court’s ruling emphasized the need for a separate framework for cryptoassets, and in light of its interpretation, “The Howey test is not straightforward to apply to tokens on exchange platforms, and therefore the context of the transaction matters.” It is clear that,” the report said.

“This undermines the SEC’s stance that cryptoassets do not require specific clarification that securities laws are clear and require contextual interpretation in all cases,” the analyst said. writing.

Bernstein called the ruling a landmark ruling that would significantly shift the “regulatory cloud over the cryptocurrency industry,” and that institutional investors, who had shunned cryptocurrencies due to regulatory challenges, will now be able to It can be expected to reconsider the adoption of asset classes.

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: XRP Ruling a ‘Landmark’ Judgment, Weakens SEC’s Stance Against Crypto: Bernstein