Court ruling confirms Ripple does not own XRP ledger.

Ripple does not own XRP ledger, court ruling confirms.

Author: LELE JIMA, The Crypto; Compilation: Song Xue, LianGuai

The recent motion to dismiss the SEC’s approval of Ripple’s lawsuit was rejected by the New York federal court, which is no longer news.

Interestingly, the decision not only rejected the SEC’s request to immediately appeal the case, but also provided clarity for the XRP Ledger (XRPL) and its native cryptocurrency XRP.

As previously reported, lawyer John Deaton emphasized the importance of Judge Analisa Torres’ ruling and stated that XRP has now become the only altcoin in the United States with legal clarity.

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Ripple does not own XRPL

Interestingly, well-known XRP enthusiast “24HRSCrypto” shared an excerpt from the ruling, in which the judge emphasized that Ripple does not own the XRP Ledger (XRPL). The user claimed that the court’s comments were clear.

According to the ruling, the U.S. Securities and Exchange Commission failed to provide evidence that the development of blockchain use cases was “a real consideration for Ripple.”

Other distributions are not securities

The court made a ruling regarding the SEC’s allegation that Ripple’s other XRP distributions violated securities laws. However, the court recently pointed out that its decision on Ripple’s other distributions on July 13 was based on the application of the Howey test to the case.

It emphasized that the first step of the Howey test requires an investment. Applying this fact to this case, the court found that the recipients of the other distributions did not pay any funds to Ripple.

According to the court, a large portion of the other distributions included grants provided to third parties as part of developing XRPL and new applications for XRP.

Misconceptions about XRPL and XRP

It is worth mentioning that some cryptocurrency enthusiasts believe that Ripple owns XRPL and its native cryptocurrency. This is mainly due to the close relationship between Ripple and XRP, as well as the fact that the company holds a large amount of XRP.

On the contrary, Ripple utilizes XRP as a bridge between two fiat currencies to achieve instant cross-border settlements. Ripple’s XRP escrow system plays a crucial role by ensuring controlled releases of the tokens in the market.

Despite not owning XRPL, Ripple has still launched groundbreaking payment solutions on the leading blockchain, including its CBDC platform.

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