This ruling is undoubtedly a milestone win for the industry, said banking giant J.P. Morgan in a research note Friday. The U.S. Southern District Court’s ruling in partial favor of payments network Ripple provides clarity as to what does and doesn’t represent a security, and the outcome is in favor of what many in the industry had been arguing.
Crypto prices rallied on the news, showing the importance of this ruling for the industry. Bitcoin (BTC) gained 3.6% on Thursday before retreating about 1.4% on Friday.
While Ripple’s win is certainly positive, J.P. Morgan also noted that this isn’t the end of the regulatory fight for the crypto industry. The SEC can appeal the ruling and will likely continue to pursue similar cases in the future.
We do not think the regulatory overhang simply disappears, it just lessens, the note stated. There are still many unanswered legal questions for the industry to operate to its full potential, which is why it’s important to hear the tone and developments from lawmakers and regulators in Washington D.C.