Author: LELE JIMA, The Crypto; Translated by: Song Xue, Golden Finance

It’s no longer news that a New York federal court recently denied the SEC’s motion to grant an interlocutory appeal in the Ripple lawsuit.

Interestingly, the decision not only denies the SEC’s request to immediately appeal the case, it also provides clarity for the XRP Ledger (XRPL) and its native cryptocurrency XRP.

As previously reported, attorney John Deaton stressed the importance of Judge Analisa Torres’ ruling and stated that XRP is now the only altcoin with legal clarity in the United States.

Ripple does not own XRPL

Interestingly, well-known XRP enthusiast “24HRSCrypto” shared an excerpt from the ruling, in which the judge emphasized that Ripple does not own the XRP Ledger (XRPL). The user called the court’s comments clear.

According to the ruling, the SEC failed to provide evidence that the development of blockchain use cases was “a genuine consideration for Ripple.”

Other distributions are not securities

The court ruled on the SEC’s claim that Ripple’s other XRP issuances violated securities laws. However, the court recently noted that its July 13 decision on Ripple’s other issuances was based on applying the Howey test to the facts of the case.

It emphasized that the first step of the Howey test requires the investment of money. Applying this fact to the present case, the court found that the recipients of the other distributions had not paid anything to Ripple.

According to the court, a significant portion of the other distributions consisted of grants to third parties as part of developing new applications for XRPL and XRP.

Misconceptions about XRPL and XRP

It is worth mentioning that some cryptocurrency enthusiasts believe that Ripple owns XRPL and its native cryptocurrency. This is mainly due to Ripple’s close association with XRP and the fact that the company holds a large amount of XRP in custody.

Instead, Ripple uses XRP as a bridge between two fiat currencies, enabling instant cross-border settlements. Ripple’s XRP custody system plays an important role by ensuring a controlled release of tokens into the market.

Despite not owning XRPL, Ripple has still launched groundbreaking payment solutions on leading blockchains, including its CBDC platform