Debate Over XRP’s Security Status Continues Amid Ongoing Ripple Lawsuit

The classification of XRP as a security continues to stir debate within the crypto community, even after a clear ruling from the court.

In July 2023, Judge Analisa Torres stated that XRP is not a security when traded in secondary markets. Although the U.S. Securities and Exchange Commission (SEC) is appealing some aspects of this ruling, it has not challenged XRP’s classification as an asset.

Recently, the SEC submitted its Form C in the Ripple lawsuit, which has led to some confusion among community members regarding XRP’s status. To clarify, Ripple’s Chief Legal Officer, Stuart Alderoty, shared an analogy to illustrate his point.

He posted two images: one featured a ticket for Taylor Swift’s Eras Tour at Hard Rock Stadium, while the other prominently stated, “XRP IS NOT A SECURITY.” In his comments, Alderoty emphasized that just as the secondary market for the Taylor Swift ticket doesn’t make it a security, the same logic applies to trading cryptocurrencies.

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He remarked, “Not every market is a securities market.” This post sparked considerable engagement on X, with notable figures like Coinbase’s CLO Paul Grewal humorously pointing out that Taylor Swift doesn’t endorse her tickets, a nod to regulators’ definitions of securities as assets that yield benefits through the efforts of others.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.