Cardano founder Charles Hoskinson praised the XRP community’s resilience and perseverance in the SEC’s legal battle against Ripple.
In a recent livestream, Cardano’s founder acknowledged the role played by members of the XRP community in paving the way for regulatory progress in the industry.
He said that when the SEC sued Ripple, members of the XRP community did not plead for leniency or ask regulators for more favorable treatment. Instead, they collectively responded as an ecosystem and met the challenges head-on.
Ripple’s victory against SEC boosts industry confidence
For context, the Ripple lawsuit stems from a December 2020 SEC lawsuit that accused the company of violating U.S. law through the sale of XRP. The lengthy legal battle cost Ripple more than $150 million in legal fees. Members of the XRP community filed important affidavits that contributed to the company’s partial court victory.
In a landmark ruling in July 2023, Judge Annalisa Torres ruled that Ripple’s programmatic XRP sales on digital exchanges did not constitute investment contracts. This ruling has restored confidence across the cryptocurrency sector, especially for other companies facing similar regulatory scrutiny.
That included Coinbase, which the SEC sued in June 2023, alleging that the exchange facilitated trading in unregistered securities, including tokens like Solana and Cardano.
Cryptocurrency is on the other side of regulatory battles
Hoskinson, who has withstood years of regulatory scrutiny from the SEC thanks in large part to Ripple’s resilience and the efforts of the XRP community, emphasized that the crypto industry is now emerging on the other side of the regulatory battle.
Industry players are currently engaging in important discussions with policymakers about how to best regulate cryptocurrencies.
Last month, representatives from Ripple, Coinbase, Uniswap, Galaxy Digital, and Chainlink participated in a roundtable discussion with pro-crypto Senate Democrats on market structure legislation. The proposed bill aims to clarify the respective roles of the SEC and CFTC in overseeing the digital asset industry.
Overall, Hoskinson stressed that the industry remains strong after surviving multiple enforcement actions by U.S. regulators.
Meanwhile, since reconciling with the XRP community, Hoskinson has praised the authenticity and integrity of the token’s founders and supporters. He aims to provide yield opportunities for XRP holders on Cardano, and recently made it possible for them to participate in the NIGHT airdrop.
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