XRP Aligns Itself With Bitcoin In Terms Of Regulatory Clarity

• Ripple highlighted that XRP is the only cryptocurrency, except Bitcoin, that has regulatory clarity in terms of status.
• The company pointed out that a lower court’s ruling that XRP is not a security remains the law of the land.

XRP Aligns with BTC in Status

Ripple may be in hot waters in the US courts, but the same cannot be said about XRP. According to the company’s third-quarter report, XRP is the only asset outside of Bitcoin (BTC) that has gained regulatory clarity regarding its status.

“XRP’s status as not a security remains the law of the land,” Ripple emphasized in its Q3 report. “XRP and BTC are still the only two tokens with regulatory clarity in the US.”

A ruling from Judge Analisa Torres of the Southern District Court of New York became instrumental in cementing XRP’s position alongside BTC. The Securities and Exchange Commission (SEC) later appealed parts of the decision, but the points of contention merely focused on the activities of Ripple involving the token, such as its sale, offering, and distribution. The regulator’s appeal no longer questioned whether or not the crypto asset in itself is a security.

What About Ether?

Meanwhile, Ethereum (ETH) has notably flown within the radar of the SEC also after its Merge in 2022. SEC Chair Gary Gensler stated following the event that he had a reason to believe that the new Proof-of-Stake protocol resembled the mechanism of security investments.

The SEC eventually abandoned its probe on Ether last June. However, it never officially clarified if the world’s second-largest crypto asset by market cap fell within the scope of US securities laws.

With that, ETH’s classification is not yet as clear-cut as BTC or XRP because the regulator merely suspended its investigation on the matter. Nonetheless, a majority of the crypto community considered the move as another win for the digital assets sector.

Ripple’s Ties With XRP

Although the XRP Ledger (XRPL) public blockchain and its token operate in an ecosystem independent from Ripple, the cryptocurrency community and mainstream media tend to tie them up together. After all, the company possesses a huge stake in the token—with most of it under escrow—and it uses the digital asset to facilitate transactions on its payment platform.

Recently, the firm headed by CEO Brad Garlinghouse has made great strides in expanding the token and its distributed ledger’s institutional adoption. This positions it for further growth in the long run.

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