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- Ripple’s victory in court could pave the way for blockchain to modernize global financial systems.
- Financial institutions may bypass regulatory hurdles by adopting blockchain if Ripple wins.
- Blockchain integration for payments, settlement, and custody could become seamless with Ripple’s success.
The outcome of Ripple’s fight in the courts might soon open the way for blockchain technology to modernize existing money systems. SMQKE explains that if the case is decided in Ripple’s favor. It may encourage more financial institutions to include blockchain in their standard operations. Recently, attorney James C. Spindler published a legal report titled “SHAQ, RIPPLE AND THE FUTURE OF CRYPTO REGULATION” for William & Mary Law School, in which he discussed this point.
The report points out how Ripple’s lawsuit could impact how crypto regulation develops going forward. According to SMQKE, a win for Ripple could help banks and asset managers redesign their operations to use blockchain networks. Consequently, they could manage their finances more smoothly and stay clear of the rules that govern conventional money exchanges.
In an important decision, Judge Analisa Torres ruled that some of Ripple’s XRP sales, such as their programmatic sales, did not break securities laws. Ripple’s sales have been speculated to play a role in the company’s valuation, rather than being seen as a violation of securities laws. If Ripple obtains a total win, SMQKE believes it would confirm these ideas, presenting a model for other companies to emulate in using blockchain.
Ripple’s Impact on Finance
If XRP wins the lawsuit, financial institutions will be spared from regulatory hurdles when using blockchain technology. According to SMQKE, this shift may cause financial institutions to improve how they process transactions, manage assets. And raise capital which can bring down expenses and enhance efficiency.
XRP success has major consequences beyond just the case. Moving financial activities like settlement, payments and custody to blockchain platforms would mean that XRP could enable companies to use tokens. And manage their actions with smart contracts. And connect without hassle with blockchain networks. As a result, the global financial landscape and many existing financial institutions could be modernized greatly.
While XRP and the SEC have reached an agreement on a settlement, the final approval is not yet in place. Ripple has been fined $50 million for selling XRP. But Judge Torres recently rejected a motion seeking an informal opinion on the settlement. A motion has been prepared to be considered again, though it is not certain when it will be ruled on.
