XRP Celebrates Regulatory Victory: Recognized as a Utility Token in Europe

In a notable show of support for XRP’s status, the European Corporate Governance Institute (ECGI) recently solidified XRP’s position as a utility token, deviating from the security classification. This decision echoes the ruling handed down by a US federal court in July 2023, highlighting a significant milestone in the legal recognition of XRP.

The study titled “Corporate Governance Meets Data and Technology,” authored by Wei Jiang of Emory University and Tao Li of the University of Florida, takes a deep dive into financial innovation within the cryptocurrency space. Investigating various forms of fundraising, such as initial coin offerings (ICOs) and security token offerings (STOs), the document highlights the importance of understanding the regulatory environment surrounding these innovations.

The European Corporate Governance Institute notes #XRP was not found a security by the court in this recent paper, “Corporate Governance Meets Data and Technology.”https://t.co/o1iKC6jqRS pic.twitter.com/uJ0bDpKfJE

— WrathofKahneman (@WKahneman) March 14, 2024

One of the focuses of the article is the regulatory uncertainty that has surrounded the world of cryptocurrencies, especially under the critical eye of bodies such as the US Securities and Exchange Commission (SEC). The SEC, under the leadership of Gary Gensler, has maintained the position that most cryptocurrencies, including XRP, should be considered securities, subject to the agency’s regulation. Contrary to this view, last July’s court ruling stated that XRP, when traded on public exchanges, does not fall into the category of securities.

The completion of the ECGI reinforces the view of XRP as a crucial tool within the Ripple Payments system, which was previously known as RippleNet. This system facilitates efficient and low-cost cross-border transactions, and XRP’s recognition as a utility token could open doors to its wider adoption by banks and other financial entities interested in improving their payment systems.

ECGI’s endorsement of XRP as a utility token not only validates its fundamental role in the global digital financial infrastructure, but also signals positive advancement in the fight for regulatory clarity in the cryptocurrency space.

At the time of publication, the price of XRP was quoted at $0.6006 with a drop of 1.7% in the last 24 hours.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.