A positive Summary Judgment in Ripple Labs v. US SEC lawsuit has drawn praise from top figures in the Web3.0 community, such as Cardano founder Charles Hoskinson.
The Cardano Founder Sees a Win for the Industry
The Cardano founder believes that Judge Analisa Torres’ decision is a significant victory for the entire industry. Taking to his official Twitter handle, Hoskinson shared a screenshot from the court in which Judge Torres stated that XRP, as a digital token, is not a “contract transaction or scheme” that meets the provisions of the Howey Test to be called an investment contract.
The highlighted section demonstrated that Judge Torres examined every facet of the XRP operations and found that the asset is not an investment contract. Charles Hoskinson, who is overjoyed, stated that the XRP lawsuit may be “one small step for XRP Nation,” but it symbolizes “one giant leap for Cryptocurrencies.” Hoskinson’s praise is even more heartfelt, given that the top crypto pioneer has been a vocal critic of the XRP community. The ability to congratulate the XRP community originates from a recent settlement in which he made the decision to bury the hatchet and pursue a common aim of supporting industry innovation.
XRP Win: a Probable Liberation for Cardano
While the Ripple vs. SEC lawsuit is still ongoing, the current reclassification of the XRP coin can aid any future crackdown on Cardano by the market regulator. The Securities and Exchange Commission classified ADA as an investment contract when it sued Coinbase and Binance exchanges, as Coingape previously reported. While the authority has not explicitly sued Hoskinson or Input Output Global over Cardano’s perceived status, the label has pushed a number of trading platforms to delist the cryptocurrency.
These exchanges include Robinhood, Bakkt, and eToro, a move that, if uncontrolled, has the potential to damage the availability of Cardano per liquidity in some of the world’s most important marketplaces.