Bank of America has emphasized the uncertainty surrounding the recent court ruling in the Ripple Labs and SEC case. While the court ruled that XRP sales through exchanges and algorithms did not constitute investment contracts, it also found that institutional sales of XRP violated securities laws. The unique characteristics of XRP as a bridge currency for cross-border transactions make it difficult to apply the court’s ruling to other digital assets. The bank calls for clear and comprehensive regulatory guidelines to promote healthy growth and mainstream adoption of digital assets. It also distinguishes between the trading of blockchain-native tokens and tokenized traditional assets, with the latter already adhering to well-established regulations.
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