CORRECTION (17 July 15:11 UTC: Corrects the story’s attribution to JMP Securities.

JMP Securities said in a Friday research note that the U.S. Southern District Court’s decision in favor of Ripple in part represents a historic win for crypto and clarifies what is and is not a security.

Analysts wrote: “Large pools of capital have been reluctant to enter an industry where the rules are unclear, while this overhang, in our view, has slowed down innovation, adoption and the overall valuation of the crypto ecosystem — this trend is accelerating, as regulatory action intensified over the past 12 months.”

This ruling is a significant victory for the industry. This ruling provides clarity and defense on what constitutes a security and the overall outcome is favorable to what many in industry had argued,” they continued.

Needham: Ripple’s XRP summary judgment is positive for Coinbase and the price target has been raised to $120.

In a decision on Thursday a U.S. court ruled that Ripple’s XRP token shouldn’t be considered as a security when sold through an exchange or programmatically.

Crypto price rallied after the news. This shows the importance of this ruling for the industry. Bitcoin ( BTC ) rose 3.6% on Thursday, before falling about 1.4% the next day.

Although Ripple’s victory is positive, JMP noted that it is not the end of the fight to regulate the crypto industry. The SEC has the right to appeal the ruling, and they will likely pursue similar cases going forward.

The note said: “We believe that the industry now has a stronger footing for the moment, which could impact ongoing cases and the pace of future litigation. But at a higher level, we don’t think the regulatory burden simply disappears. It just diminishes.”

The analysts said that there are many legal questions left unanswered for the industry to reach its full potential. It is therefore important to listen to the tone and developments of lawmakers and regulators from Washington D.C.