Ripple's Legal Victory Will Be A Rising Tide For The Crypto Industry, Says Cantor Fitzgerald Report

The outcome of the SEC v. Ripple XRP/USD case is seen as a pivotal moment in shaping future U.S. crypto regulation, according to a report by Cantor Fitzgerald.

The report, which quoted an interaction with Pacific Street Managing Director Gareth Rhodes, suggested that the ruling, in this case, is a significant step towards safeguarding domestic crypto on-ramps from regulatory crackdowns.

SEC Chairman Gary Gensler previously argued a large majority of cryptocurrencies, excluding Bitcoin BTC/USD, are securities.

The SEC v. Ripple case ruling establishes that crypto tokens are not inherently securities.

This ruling is seen as the first major pushback to the SEC's "regulation by enforcement" approach to the crypto industry and is believed to have significant implications for the ongoing SEC lawsuits against Coinbase Global Inc COIN and Binance BNB/USD.

Rhodes believed the SEC v. Ripple ruling will have significant implications on the ongoing SEC v. Coinbase case. The Ripple outcome is seen as an important victory for crypto exchanges that facilitate both programmatic sales and secondary sales.

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Rhodes said the court's ruling on programmatic distribution will likely strengthen Coinbase's argument that secondary sales of crypto tokens with a blind bid/ask are not unregistered security sales.

Rhodes also believed the court's decision on institutional sales of XRP will impact how the SEC will seek future enforcement.

Institutional offerings of crypto tokens will become low-hanging fruit for the SEC's "regulation through enforcement" methodology.

While the ruling is seen as a win for the crypto industry, Rhodes believed the ongoing battle between the SEC and the crypto industry is far from over.

Federal regulators have been clear they would take an aggressive posture when applying established laws and guidelines against the crypto sector.

The report reiterated the view that a "rising tide will lift all ships" in this industry.

Any incremental court rulings that provide increased regulatory clarity and bolster investor confidence are believed to continue driving further institutional and retail adoption.

Ripple's win would likely accelerate adoption and innovation across the crypto ecosystem, benefiting the largest dominant, fully decentralized cryptocurrency.

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