Ripple’s XRP Ruling a ‘Milestone Win’ for Crypto Industry, Says J.P. Morgan
The fight for regulatory clarity isn’t over yet, however, as the SEC will likely appeal the decision and continue to pursue similar cases in the future, analysts wrote.
The U.S. Southern District Court’s represents a milestone win for the crypto industry and provides legal clarity as to what does and doesn’t represent a security, banking giant J.P. Morgan wrote in a research note Friday.
“Large capital pools have been reticent to engage in the industry with unclear rules of the road, while the related overhang has also slowed innovation, adoption, and just overall crypto ecosystem valuation, in our opinion — accelerating as regulatory actions heated up over the past year,” analysts wrote.
“This ruling is undoubtedly a milestone win for the industry. It provides legal clarity and defense around what does and does not constitute a security, and that overall outcome is in favor of what many in the industry had been arguing,” they continued.
In a , a U.S. judge ruled that Ripple’s XRP token should not be considered a security if sold via an exchange or through programmatic sales.
, underpinning the importance this ruling has for the industry. Bitcoin () gained 3.6% on Thursday before retreating about 1.4% on Friday.
While Ripple’s win is certainly positive, J.P. Morgan also noted that this isn’t the end of the regulatory fight for the crypto industry, as the SEC can appeal the ruling and will also likely continue to pursue similar cases in the future.
“We do believe the industry has now established stronger ground for the time being which could affect ongoing cases, and also the pace of further litigation, but at a high level, we do not think the regulatory overhang simply disappears, it just lessens,” the note stated.
There are still many unanswered legal questions for the industry to operate to its full potential, the analysts continued, which is why it’s important to hear the tone and developments from lawmakers and regulators in Washington D.C.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP News Update: Pi Network Faces ISO 20022 Hurdle—Building Trust to Rival Ripple and Stellar
- Pi Network, with 50M users, joins Ripple/Stellar in ISO 20022 compliance efforts to bridge blockchain and traditional banking by 2025. - Finalizing sandbox testing for SWIFT compatibility, Pi aims to enable institutional interoperability through decentralized compliance APIs and real-time transaction verification. - Targeting emerging markets via Nigeria/Vietnam pilots and regulatory discussions in Kenya/Indonesia, Pi seeks to leverage its user base for retail/small business adoption. - Unlike Ripple/Ste
Bitcoin News Update: Optimistic Fed Stance Lifts Markets, While Analysts Remain Wary Over Trump Policy Proposals
- Fed rate cuts spark optimism in crypto and equities, with S&P 500 projected to rise 4%-10% by 2025 amid investor skepticism. - J.P. Morgan warns Fed may pause 2025 cuts to assess Trump-era policy impacts, diverging from Wall Street's easing expectations. - Bitcoin rebounds to $114,600 as ETF inflows drive institutional ownership to 12% of total supply, fueled by geopolitical stability and macro trends. - Binance's CZ backs crypto's macro role post-Trump pardon, while analysts caution Trump tariffs could
China Intensifies Crypto Restrictions to Boost Digital Yuan and Challenge Dollar Supremacy
- Beijing Procuratorate revealed a 1.1B yuan virtual currency case, highlighting China's intensified crackdown on offshore forex transactions via digital assets. - Regulatory focus shifts to curbing black-market crypto activities while advancing digital RMB (e-CNY) for cross-border trade to challenge U.S. dollar dominance. - Bank of China prioritizes e-CNY offshore applications in Hong Kong and Southeast Asia, aiming to create an independent yuan-based payment system. - Geopolitical tensions in U.S.-China
Bitcoin News Update: Interest Rate Reduction Seeks to Address Labor Market Slowdown Amid Easing Inflation
- The Fed is set to cut rates by 25 bps at its October 2025 meeting (98.3% probability), shifting focus from inflation to labor market stabilization amid softening employment data. - Private-sector indicators and truncated CPI data enabled the FOMC to act despite a government shutdown, with analysts citing "safer" conditions for easing due to weak labor markets and subdued inflation. - Bitcoin surged to $116,000 as crypto markets priced in the cut, while geopolitical risks eased with potential U.S.-China t
Trending news
MoreCrypto prices
More
