- Ripple adjusts its XRP sales to comply with regulations, after ruling that it does not consider it financially valuable.
- Ripple incentivizes XRPL EVM sidechain validators with rewards in XRP, strengthening its ecosystem and compliance.
Ripple Labs, the pioneer of blockchain-based payment solutions, has taken a step forward in its commitment to legality and transparency. After facing a legal battle with the SEC, Ripple has adapted its XRP sales strategy, ensuring that its operations align with current regulations.
This change comes at a time when the cryptocurrency industry is closely watching the development of this case, which could set precedents for the future of digital currencies and their regulation.
Ripple’s decision to modify its XRP sales operations is in response to a court ruling issued on July 13, 2023. This ruling established that XRP is not classified as a financial security under federal law, a turning point in the litigation between Ripple and the SEC.
However, the court also noted that certain prior sales of XRP to qualified investors were considered investment contracts, subject to registration with the SEC. Ripple has taken note of this decision and has realigned its sales practices well in advance of this ruling, demonstrating its willingness to operate within the legal framework.
Beyond the courtroom, Ripple has strengthened its compliance posture by obtaining key licenses in strategic jurisdictions.
Obtaining a full Major Payments Institution license from the Monetary Authority of Singapore and registration as a virtual asset service provider with the Central Bank of Ireland underscore Ripple’s effort to promote a regulated and secure environment for cryptocurrency trading .
These licenses are in addition to those already acquired in the United States, including the NY BitLicense and money transmission licenses in nearly 40 states, cementing Ripple’s position as a responsible and committed player in regulatory compliance.
On another note, Ripple has announced that XRPL EVM sidechain validators will receive rewards in XRP. This announcement, made by Ferran Prat Tió, CEO of Peersyst Technology, marks an evolution in Ripple’s incentive model.
🔥 Is This Finally XRP's Time To SHINE, WIll hit $10 ?
🔹Last bull #XRP seriously underperformed while stuck fighting the #SEC
🔹 BTC hit new highs while XRP failed to pass 2017's $3.30 ATHBut with the SEC case now won – the floodgates may finally BE OPEN!
🔹 Similar… pic.twitter.com/joWLvBnadp— Crypto Patel (@CryptoPatel) February 7, 2024
Unlike XRPL, where transaction fees are eliminated, this sidechain will accumulate gas fees in XRP to redistribute among validators. This approach not only incentivizes participation in the network but also strengthens the XRPL EVM ecosystem, facilitating greater integration and collaboration within the Ripple community.
Ripple’s commitment to legality and transparency comes at a critical time for the cryptocurrency industry. With regulatory scrutiny on the rise, Ripple’s actions could provide a model for other cryptocurrencies and blockchain projects to follow.
Proactively adapting to regulations, obtaining relevant licenses and fostering an inclusive and regulated ecosystem are essential steps to ensure the long-term viability of cryptocurrencies in the global market.
Ripple’s strategy, focused on compliance and innovation, not only strengthens its market position but also provides a roadmap for productive interaction between cryptocurrencies and regulators.
As the industry continues to mature, the ability to adapt and cooperate with authorities will be a determining factor in the success and acceptance of distributed ledger technologies.
With initiatives such as rewarding XRPL EVM sidechain validators, Ripple is demonstrating its dedication to creating a more robust, secure and, above all, regulated ecosystem.
