Ripple's legal triumph over the SEC was bolstered by contributions from the Ripple community.
In a remarkable turn of events, the community of XRP investors, known as the "XRP Army," have played a significant role in Ripple's recent victory against the Securities and Exchange Commission (SEC) lawsuit.
Over the past few years, this dedicated group of XRP holders has been gathering relevant evidence to support Ripple's fair-notice defense. Their efforts primarily involved researching and compiling speeches, presentations, and statements from the SEC and the government regarding blockchain, cryptocurrencies, XRP, and Ripple, all without Ripple's direct request.
Deborah McCrimmon, Ripple's Vice President and Deputy General Counsel, has confirmed the value of the community's work, acknowledging it in a recent podcast interview. McCrimmon emphasized that Ripple's mission remains unchanged: building the "internet of value" where money transfers worldwide are as easy and cheap as sending an email.
The community's research proved critical in helping Ripple argue that the SEC had not provided fair notice about how securities laws would be applied to cryptocurrencies. This argument seemed to resonate with Judge Analisa Torres, who cited XRP holder affidavits in her ruling that XRP itself is not a security.
This defense proved instrumental in Judge Torres' mixed ruling delivered in July 2023, which was a significant milestone for Ripple. Coincidentally, Ripple's token established a new all-time high of $3.65 in July, reflecting the market's optimism about the outcome.
The XRP Ledger continues to be central to Ripple's goal of providing low-cost, instant cross-border payments. The community's efforts, done voluntarily on Twitter, would have cost "thousands of dollars" if done by paid lawyers.
Attorney John Deaton, who represented XRP holders through an amicus brief in the SEC lawsuit against Ripple, stated that the "XRP Army" made a provable difference in the case outcome. Deaton emphasized that organized retail investors can influence legal outcomes, as one person can inspire many people, and together, they can make a difference.
Ripple's victory also sets a potential precedent for how other digital assets might be viewed under securities law. In the wake of this victory, Ripple continues to expand its business, announcing plans to purchase Rail, a stablecoin payments platform, for $200 million.
More recently, XRP rallied again as both parties abandoned their appeals in August, reaching a peak of $3.35 before pulling back. The case's resolution has brought a sense of relief to the XRP community and the cryptocurrency market as a whole.
However, the price of XRP currently trades at around $2.85, showing a 4% decline in the last 24 hours. Despite this minor setback, the future of XRP and Ripple looks promising, given the community's unwavering support and the potential implications of this case for the cryptocurrency industry.
