A new approach to cryptocurrency could change the industry as we know it, and the picture should become clearer later this year as a court case winds down.
As Be3 argues, Ripple’s legal battle with the U.S. Securities and Exchange Commission could “spark a green crypto revolution.” Unlike Bitcoin mining, known for gobbling up more energy than some countries, Ripple’s XRP consensus algorithm validation requires significantly less computing power — and therefore less energy overall.
“The outcome of Ripple’s legal battle could not only bolster its credibility but also set a precedent for other cryptocurrencies to follow eco-friendly routes, nurturing a culture of sustainability in digital finance,” Trent Daxter wrote for Be3.
In addition to empowering investors to participate in a more sustainable future by reducing pollution and resource waste associated with cryptocurrency mining, Ripple’s XRP — which uses 0.01% of the energy consumed by Bitcoin’s network, per Technology Innovators — could provide a clear path to reducing strain on overwhelmed and aging electric grids, helping to ensure that a booming crypto market doesn’t leave people in the dark.
However, Ripple’s legal battle with the SEC has stretched on for years — with both parties obtaining key victories in the case after the SEC alleged in 2020 that Ripple sold XRP as an unregistered security offering, raking in more than $1.3 billion without filing the required registration document when raising capital from the public, per Investopedia.
In 2023, a judge ruled that Ripple’s “programmatic sales” were not an unregistered security offering, but its “institutional sales” were. The company was ordered to pay $125 million to the SEC rather than the sought-after $2 billion, sparking optimism about the future of XRP. The SEC appealed that decision on Jan. 25.
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Now, XRP is still waiting for approval as an exchange-traded fund, or ETF, after the SEC announced March 11 that it has delayed its decision on any proposed rule changes involving the currency. The proceedings appear to be entering their “endgame,” with April 16 earmarked as a date to watch by CoinPedia, though a filing by the SEC indicates the case could stretch until May.
“Ultimately, the Ripple-SEC clash stands as more than just a financial legal dispute; it is a bellwether for technological evolution, environmental responsibility, and societal transformation in an interconnected world,” Daxter wrote for Be3. “The verdict will shape not only the future legal framework for digital assets but also potentially redefine how crypto can contribute positively to global priorities.”
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