In a recent turn of events, the current courthouse rollercoaster between Ripple and the United States Securities and Exchange Commission (SEC) opens the discussion about the future of cryptocurrency regulations. The outcome might significantly shape the future of crypto operations and security laws, though it’s clear that the ride is far from over.
We witnessed attorney John Deaton, representing a large group of XRP token holders, outline potential settlement pathways amid the ongoing lawsuit. This settlement could be influenced by the contemporary Coinbase vs. SEC case. Deaton suggests that if the motion to dismiss Coinbase’s case is accepted, it could denote that token sales through an exchange do not fall within U.S. securities laws.
Such a decision would significantly limit the SEC’s scope for appeal, which could drive toward settlement as a preferable route. Moreover, the agency’s inherent powers could be curtailed, making it less likely to overstep its bounds.
In a filing dated September 1, 2023, Ripple argued that there wasn’t a legal basis for the interlocutory appeal, in their challenge against the SEC. Their contention was grounded in the idea that the SEC deviated from the conventional legal viewpoint, specifically relating to the Howey Test’s application to XRP token transactions. With the recent ruling in favor of Torres, several exchanges that initially delisted XRP are now demonstrating intent to re-list the token.
Meanwhile, 2023 marked the SEC’s heightened pursuit of cryptocurrency firms alleged securities violations, zeroing in on various platforms, including Binance and Coinbase. However, the asset manager Grayscale emerged victorious against the SEC’s charge, securing an appeal for a review of its Bitcoin exchange-traded fund (ETF) application.
While these matters continue to unravel, the future of cryptocurrency regulations hangs in the balance. Notwithstanding the potential for settlements and the limited scope of the SEC, the outcome’s influence will undoubtedly reverberate within the cryptocurrency sphere. The question remains, will this lead to a more regulated future or open the gates for innovation and progress?
Source: Cointelegraph
