Cryptocurrency
XRP court ruling marks milestone, but new crypto law could take years
The recent court ruling that Ripple’s XRP (XRP) token is not considered a security when sold on digital asset exchanges has sparked a wave of positive sentiment across the cryptocurrency ecosystem.
Stuart Alderoty, chief legal officer at Ripple, told Cointelegraph that he believes the most important part of this ruling is that the court unequivocally said XRP is not, in and of itself, a security. Given this, Alderoty noted that the XRP ruling is now a matter of law and not up for trial.
“Additionally, other findings that are not subject to trial include the following: sales on exchanges are not securities, sales by executives are not securities, and other XRP distributions to developers, charities and employees are not securities. The court’s ruling can now also be used by others in the SEC’s crosshairs,” he said.
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
Ruling doesn’t ensure clear regulations
While the XRP court ruling marks a significant milestone for the entire crypto industry, Alderoty noted that he hopes Congress will use the ruling to create a clear regulatory framework moving forward. “There will be further court proceedings per the court’s order, and we’re evaluating next steps,” he said.
The United States Securities and Exchange Commission (SEC) can appeal the XRP ruling. Lewis Cohen, co-founder of DLx Law — a law firm focusing on crypto assets and blockchain technology — told Cointelegraph that the SEC could “reverse” this ruling by appealing it once it becomes final. “They can also bring similar actions in other federal districts seeking alternative outcomes,” he said.
A blog post by the law firm Holland & Knight elaborates on this notion. The firm states that the “court’s grant of summary judgment on certain aspects of the case signal some measure of finality with regard to the SEC’s jurisdictional reach (or lack thereof), an appeal would be deemed interlocutory at this stage, as the court did not dispose of the case in its entirety.”
Yet the post further notes that while “interlocutory appeals are permissible, they are rarely granted in practice.” So, it could take months or even years if the SEC decides to appeal the court ruling.
In addition, whether other digital assets sold on exchanges should be considered securities remains questionable. The Holland & Knight blog post states, “Judge Torres expressly declined to expand her opinion to secondary market sales of XRP or other tokens,” which could create further conflicts going forward.
Margaret Rosenfeld, chief legal officer at Cube Exchange — a digital asset exchange set to launch in Australia — told Cointelegraph that she believes companies may begin selling tokens on crypto exchanges in “programmatic sales” following the XRP ruling. This manner of sale would be based upon the argument that blind bid/ask sales are not securities transactions.
“Ripple sold approximately $757.6 million of XRP on digital assets exchanges ‘programmatically,’ which is through the use of trading algorithms. The sales were blind bid/ask transactions, which means the buyer and seller don’t know each other. The court found that because programmatic buyers could not have known whether their purchase payments went to Ripple, they didn’t invest their money in Ripple at all,” she said.
Rosenfeld cautioned that relying on a decision from one district court judge that can be appealed by the SEC does not mean that such programmatic sales are a clear path. In addition, “the court also didn’t address airdrops or secondary sales, so these will also remain risky.”
XRP ruling is a step in the right direction
All things considered, there are still several concerns that will likely delay a clear regulatory framework for digital assets to take shape in the United States. Rosenfeld is aware of this, noting that Cube Exchange has no plans to launch in the U.S. anytime soon.
“We can’t rely on one district court judge ruling to offer our products and services in the United States.”
However, she added the ruling had given hope to some digital asset firms that they could offer products and services in the U.S. sooner than expected.
“This case helps our industry in urging Congress that a digital asset framework is needed, as it demonstrates a clear conflict between our executive and judicial branches of government on how digital assets should be treated,” she said.
Alderoty also remains optimistic, saying he believes this decision will eventually encourage U.S. financial institutions to start discussing how crypto and blockchain technology can solve customer pain points. He said:
“Ripple’s business continues to scale outside of the U.S. in markets where there is regulatory clarity for crypto. In the U.S., banks and financial institutions have been on the sidelines, as they are reluctant to do business without a clear regulatory framework.”
Bitget, a Seychelles-based crypto exchange, has unified its native cryptocurrencies, Bitget Token (BGB) and Bitget Wallet Token (BWB), into a single utility token, BGB.
The move has led to an impressive 22% rise in Bitget Token’s price in the last 24 hours, pushing it to an all-time high (ATH) of $8.45.
In addition, the company revealed that they will burn a whopping $5 billion worth of BGB tokens in a newly unvelied whitepaper.
Token Merge Sparks Market Enthusiasm
At the time of writing, data from CoinGecko showed that the asset’s value had increased by more than 125% over the past seven days, outperforming the global crypto market, which lost 1.50% of its worth in that period. In addition, it has done better than similar centralized exchange (CEX) tokens, which are up about 12.70% on average.
The uptick is even more pronounced across extended periods, with BGB jumping more than 160% in the last fortnight and almost 430% over 30 days. Further, the token’s current price is a massive 1,346.2% improvement over its level from the same time last year, potentially making it the best-performing CEX cryptocurrency of 2024.
BGB’s current market capitalization of over $11.7 billion has propelled it into the #19 position among the largest-capped cryptocurrencies, leaping Stellar (XLM), Polkadot (DOT), and Hedera (HBAR).
In addition to the merger, the team revealed a considerable burn of more than $5 billion worth of tokens, which surely played a role in the price uptick. This represents over 40% of the total supply of BGB.
Utility and Real-World Integration
According to Bitget CEO Gary Chen, the merger will grow BGB’s utility, with plans to use it in decentralized applications (dApps) and major blockchain ecosystems. The integration will also reportedly extend to staking in decentralized finance (DeFi) protocols and to power essential services such as multi-chain gas fee payments.
Beyond the blockchain, the exchange intends to position BGB as a key enabler of real-world applications by allowing payments for dining, travel, and shopping, among others, through its Web3 PayFi service.
The company has assured BWB holders that their assets will be transitioned to BGB through an automated swap process that will convert each BWB token to BGB at a pre-determined ratio. Any remaining BWB has been earmarked for burning to bolster the unified asset’s scarcity and long-term value.
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[PRESS RELEASE – George Town, Cayman Islands, December 27th, 2024]
As the cryptocurrency sector continues its evolution, SimpleSwap, a user-friendly cryptocurrency exchange platform, has shared its market insights for 2025. Analysts from SimpleSwap, Rick S. and Henry B., have provided an overview of anticipated trends that may shape the industry in the coming year.
Tokenization of Real-World Assets (RWA)
Blockchain technology is poised to play a pivotal role in tokenizing real-world assets (RWA), including stocks, bonds, real estate, and commodities such as oil and precious metals. According to Henry B., this advancement could broaden access to traditionally illiquid assets, integrating them into decentralized finance (DeFi) ecosystems and enhancing their tradability.
Developments in Meme Coins
Meme coins are expected to maintain their prominence within the crypto market. Emerging blockchains like Base and Sui may serve as platforms for new meme coin projects. Analysts note the growing influence of artificial intelligence in streamlining the creation, promotion, and trading of these coins, which may further simplify the process for developers.
Bitcoin and Institutional Strategies
Analyst Rick S. anticipates that MicroStrategy will continue to increase its Bitcoin holdings, potentially reinforcing its position as a significant institutional player. This activity may align MicroStrategy’s stock performance with broader market trends in cryptocurrency.
Ethereum’s Prospects
Ethereum (ETH) is projected to reach new all-time highs, driven by its ecosystem’s expanding adoption and innovative developments. Analysts highlight Ethereum’s role as a foundational blockchain supporting numerous decentralized applications (dApps) and protocols.
Regulatory Shifts in the U.S. and Europe
Changes in the regulatory landscape could impact the crypto industry significantly. SimpleSwap analysts suggest that shifts in U.S. policies and proposed European legislation may aim to enhance transparency and compliance in the sector.
Continued DeFi Expansion
DeFi is expected to experience further growth, with total value locked (TVL) increasing across key areas such as cross-chain exchanges, decentralized derivatives, and restaking. Custom Layer 1 networks designed specifically for DeFi applications could also emerge.
Solana’s Growth Trajectory
Solana may see significant growth in adoption, attributed to its high transaction speeds and cost-efficiency. The blockchain remains a popular choice for meme coins and DeFi projects, potentially positioning it as a competitor to Ethereum.
Market Capitalization Milestones
The cryptocurrency market’s total capitalization is expected to reach new all-time highs, driven by leading cryptocurrencies such as Bitcoin and Ethereum, alongside strong performance from altcoins.
Institutional Interest in ETFs
Exchange-traded funds (ETFs) for Bitcoin and Ethereum are anticipated to continue attracting both retail and institutional interest. Analysts also predict the introduction of ETFs for other prominent cryptocurrencies, which could diversify investment opportunities.
Broader Adoption in Emerging Markets
Cryptocurrencies are expected to gain traction in regions with economic instability, offering alternatives to depreciating national currencies. Enhanced crypto payment tools and tax services may support adoption, providing financial solutions in these areas.
Role of Artificial Intelligence
Artificial intelligence is projected to have an increased impact on trading and DeFi operations, facilitating automated strategies and fund management through AI-driven insights.
For further insights, users can visit the SimpleSwap Analytics section or follow the platform on TradingView.
About SimpleSwap
SimpleSwap is a cryptocurrency exchange platform offering fast, secure swaps and supporting over 2,500 cryptocurrencies. With features such as fiat-to-crypto transactions and cross-chain exchanges, SimpleSwap aims to make cryptocurrency accessible to all users.
Disclaimer
This publication is for informational purposes only and does not constitute investment advice.
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The ongoing political turmoil in South Korea has had a ripple effect on the country’s financial market. The South Korean won has dropped to its lowest value against the United States dollar since March 2009.
This devaluation is reflected in the Bitcoin Kimchi Premium, a metric showing the gap between BTC’s price in South Korea and other countries. On-chain data from CryptoQuant reveals that local investors spend as much as 3% more to buy BTC than global crypto users.
South Korean Political Troubles
Jeff Park, the Head of Alpha Strategies at Bitwise, shared insights into the present political troubles in South Korea. He explained that the country’s lawmakers recently filed a motion to impeach the Prime Minister and interim president, Han Duck-soo. This comes just two weeks after the parliament impeached President Yoon Suk-yeol, who has ruled the Asian nation since May 2022.
The president’s ousting came after he tried to implement martial law in the country to protect it from “anti-state” forces. Enforcing martial law involves conferring authority from civilians to the military. This rule suspends the civil right to freedom of the press and assembly and downsizes the power of government agencies and the courts.
Highlighting how the ongoing political turmoil concerns global democracies, the Bitwise executive wrote:
“The use of impeachment as a political tool, combined with allegations of foreign election interference, underscores the fragility of democracy in the face of disinformation. This is not just a Korean story; it’s a warning for democracies worldwide.”
Impact on Bitcoin Kimchi Premium
News about South Korea’s acting president’s impeachment triggered the won’s drastic devaluation.
Crypto asset prices are usually higher on South Korean exchanges than on foreign trading platforms, primarily because of the country’s regulators’ stringent capital control policies. At the time of writing, BTC was 144,450,000 won ($98,000) on the South Korean exchange Upbit, compared with $95,100 on the American exchange Coinbase.
Past reports show that an increase in the Bitcoin Kimchi Premium often indicates a bullish streak on South Korean crypto exchanges.
Despite the increased price gap, local investors have rapidly flocked to dollar-denominated assets like BTC as a haven from the struggling won.
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