A court ruling that cleared Ripple’s XRP token of being considered a security offering might signal a turn in the tide against regulatory scrutiny of the cryptocurrency ecosystem in the United States and current lawsuits involving the likes of Coinbase and Binance.US and pending ETF applications.
Speaking exclusively to Cointelegraph during the company’s annual Apex developer conference being hosted in Amsterdam, Netherlands, Ripple CTO David Schwartz weighed in on the potential precedent set by a federal judge ruling that XRP was not a security when sold programmatically on cryptocurrency exchanges.
Ripple has been entwined in a protracted legal battle with the U.S. Securities and Exchange Commission since 2020, but its recent part victory may have positive implications for a number of crypto-related lawsuits instituted by the SEC.
Schwartz admitted that the SEC case had cost Ripple business deals that had been on the table, but stressed that the bigger loss was felt in the community as ecosystem support felt stifled by the delisting of XRP across a number of prominent exchanges. This has since changed with the latest ruling in favour of XRP:
“The ruling that we’ve had so far was sufficient to allow exchanges to relist XRP, and it was big, I think, for the entire ecosystem.”
Schwartz said that the tide was perhaps turning in the United States, where crypto ecosystem participants began considering relocating to different jurisdictions in order to continue operating away from a cloud of regulatory uncertainty:
“I feel bad that I have to tell people that the United States is probably not where they want to be, but the tide is turning. You know, the ruling in our suit that basically said that XRP is not inherently a security, that’s huge.”
Schwartz said that the wider industry was now feeling the scrutiny that Ripple had first endured from the SEC in 2020, with the likes of major cryptocurrency blockchains like Solana, Cardano and Polygon seeing their respective tokens labeled alongside others as unregistered securities in the SEC’s lawsuits against Coinbase earlier in 2023.
“They (SEC) can apply these very same arguments to whatever cryptocurrency you like or whatever business you like. Fortunately, people understand that argument a lot better now that they’ve seen the SEC go after Coinbase and others and some of the things they’ve done.”
The Ripple CTO also believes that U.S. judges are looking more skeptically at cases brought forward by the SEC and that companies with the resources are taking a stand that will benefit the wider industry.
“They’re starting to get huge pushback from Coinbase and pushback on the ETFs. Hopefully that will prompt some changes at the legislature level, hopefully positive ones.”
Ripple’s Apex conference brings together developers building within the XRP Ledger blockchain ecosystem. The blockchain forms the backbone of RippleNet, the platform that manages Ripple’s XRP payments system.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Robert Jenrick has defended being handed a £75,000 donation from a company which had received money from a firm registered in the British Virgin Islands (BVI), despite criticising Labour over the freebies row.
Questions have been raised over the ultimate source of the funds from The Spott Fitness, which gave Mr Jenrick three separate £25,000 donations in July.
The Tory leadership contender told Sunday Morning With Trevor Phillips that The Spott Fitness “as I understand it… is a fitness company that operates in the UK”, and the donation was “perfectly legal and valid”.
During the interviews, Kemi Badenoch said she is a fighter and if someone takes a swing at her “I will swing back”.
Meanwhile, Tom Tugendhat defended his “posh boy public school background”, saying his military service has given him leadership skills, while former home secretary James Cleverly refused to name any of the previous four Tory prime ministers as being to blame for the party’s general election defeat, saying the public “don’t like infighting”.
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Jenrick says donations ‘valid’
Asked about the donations from The Spott Fitness, which have been declared on his MPs’ register of interests, Mr Jenrick said: “As I understand it, this is a fitness company that operates in the UK.
“It’s a perfectly legal and valid donation under British law and we’ve set it out in the public domain in the way that one does with donations.”
Pressed for details on who owns the company and who works for it, the former immigration minister said this would be set out “on Companies House in the normal way” and he has “obviously met people who are involved in the company”.
“What people are criticising Labour for is actually rather different,” he added.
“Labour are being criticised for their rank hypocrisy that they spent years complaining about other political parties and then they’ve chosen to take off donors and cronies and to give passes to Number 10 in response.”
The Labour Party Conference in Liverpool last week was overshadowed by a donation and freebies row, after it emerged Sir Keir Starmer accepted over £100,000 in gifts since 2019.
Questions have been raised in particular over the large amount given by Labour peer and TV executive Lord Alli, who had a pass to Number 10 for a short time in order to attend meetings, the government said.
The Conservatives are now gathering in Birmingham since their worst defeat at the ballot box in history at the July general election.
Jenrick backs ‘cast iron cap’ on migration
Mr Jenrick, currently the frontrunner to replace Mr Sunak, said his party made “serious mistakes” and failed to deliver.
He is pitching himself as a “change” candidate, telling Trevor Phillips he would take the UK out of the European Convention on Human Rights (EHCR) in order to get the failed £700m Rwanda asylum scheme up and running, and introduce a cap on migration.
He said this would be different from previous commitments to introduce a limit as the cap would be “legally binding… cast in iron”, with the number set “in the tens of thousands or lower”.
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‘I will swing back’
Badenoch: ‘If you swing at me I will swing back’
Mr Jenrick faces competition on the right from Kemi Badenoch, the former equalities minister.
Speaking to Phillips, she defended an Op-ed in The Daily Telegraph in which she claimed there was a rise in the number of migrants coming to the UK who “hate Israel”.
She said she was not referring to all Muslim immigrants “but there are some, those who buy into Islamist ideology, political Islam, they do not like Israel and we need to be able to distinguish between the two”.
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The North West Essex MP said: “I will not stand there and let people punch me. If you swing at me I will swing back but I don’t look for fights.”
She added: “I am something that is just different and unique and that is why I stand out in this contest.”
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1:53
‘People have seen my faults’
‘Public don’t like bickering’
All four leadership contenders will make their case at the party conference this week, before another round of voting by MPs will reduce them to the final two, which the party membership will then vote on.
Mr Cleverly, who got the least votes of those remaining in the previous round, said his various cabinet roles in the past few years meant he has spent “more time promoting other people’s ideas” rather than his own – but that shows he is a “team player”.
He declined to name a prime minister who he blamed most for the party’s 2024 defeat but added: “I’ll tell you what the public told me they didn’t like – they didn’t like the constant infighting, they didn’t like the bickering.”
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1:46
Need to be ‘tough’ on Iran
Mr Tugendhat asked the public to judge him on his own record, rather than his public schooling.
“I think that decisions I have made for the last 35 years demonstrate the character that you are looking at,” he said.
“I have chosen consistently to serve our country. I have put myself on the frontline in Iraq and Afghanistan.”
Former Labour MP Rosie Duffield has said she never thought she would leave the party “in a million years” and suggested the prime minister has a “problem with women” after her resignation.
The Canterbury MP, who submitted a scathing resignation letter to Sir Keir Starmer on Saturday, told the BBC she is “desperately sorry” to those in her constituency who voted for Labour.
“It’s not at all where I wanted to be. I never thought in a million years I would leave this party,” she told the broadcaster late last night.
“I’m trying not to get upset… it’s in your soul and your heart, particularly someone like me.
“I’m from a very different background to Keir Starmer. I was a single mum who needed the Labour Party.
“It’s just so profoundly disappointing as a Labour voter and activist and a former recipient of tax credits in a low-paid job to see this is what we’ve become.”
Her resignation letter to the prime minister said she was “so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party”.
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In the interview with the BBC’s Laura Kuenssberg, Ms Duffield was asked if she thought Sir Keir “has a problem with women”.
She replied: “I’m afraid I do. I’ve experienced it myself.”
The now-independent MP said she and other female Labour backbenchers refer to “the young men who surround” Sir Keir as “the lads”.
“It’s very clear that the lads are in charge,” she added.
“They’ve now got their Downing Street passes and they’re the same ones briefing against me in the papers and other prominent female MPs.”
Her resignation letter specifically criticised Sir Keir’s treatment of Hackney North and Stoke Newington MP Diane Abbott as “deeply shameful” after her long-term suspension.
Reacting to Ms Duffield’s resignation on Sky News, Labour minister Pat McFadden said he “regrets” her decision, but added: “It’s probably not a secret that she’s been unhappy for some time.”
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1:47
PM defends £20k donation from Lord Alli
On questions of “sleaze” that relate to Sky News revelations of the prime minister receiving more freebies than any other MP, he said he “wouldn’t characterise it in the way that Rosie has” and that there was “no public money involved”.
He also said he is “not ashamed of the party” and that “government is always tough” in light of Labour’s decision to cut winter fuel payments for thousands of pensioners.
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Ms Duffield told Kuenssberg Labour’s three months in power has been “mass hypocrisy” she “can’t be part of”.
“It’s greed,” she said. “Why else would someone on so much more money than most people get free gifts? He can absolutely afford his own clothes – we all can.”
She said Sir Keir “hasn’t answered” or “actually explained” the situation.
In response to the revelations on his donations, he said: “Wherever there are gifts from anyone, I’m going to comply with the rules.
“It’s very important to me that the rules are followed. I’ve always said that. I said that before the election. I reinforced it after the election. And that’s why shortly after the election, my team reached out for advice on what declarations should be made so it’s in accordance with the rules.
“They then sought out for further advice more recently, as a result of which they’ve made the relevant declarations.”