-
Could Ripple’s resilience against the SEC point to a turning point for crypto enforcement policies?
-
SEC reignited legal tensions with Ripple Labs over XRP’s classification.
-
XRP surges by 9.21%, reflecting resilience despite ongoing regulatory scrutiny by the SEC.
Ripple’s ongoing battle with the SEC over XRP classification heats up, showcasing market resilience amidst regulatory scrutiny.
What’s the reason behind the appeal?
The SEC argued that “investor expectations hinge on the issuer’s actions, not the identity of the seller,” emphasizing that Ripple’s distribution of XRP, even in non-cash transactions like employee compensation and business incentives, aligns with the “investment of money” requirement under the Howey framework.
The timing here is interesting, especially since changes in the SEC’s leadership are anticipated soon. Nevertheless, the regulator has remained firm, refusing to delay its pursuit of this case, as confirmed by Ripple’s Chief Legal Officer Stuart Alderoty.
Ripple Labs criticizes SEC
As expected, Ripple’s leadership has not held back in criticizing the SEC’s decision to pursue an appeal against its recent legal setback.
Just recently, Alderoty labeled the move as a “waste of taxpayer money,” reflecting the firm’s growing frustration with the regulator’s relentless enforcement actions.
He stated,
“On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening brief in their appeal of our victory (current deadline Jan 15) – and they refused. What a waste of time and taxpayer dollars!”
Will Trump help cool down the SEC vs Ripple legal war?
All of this coincided with top Republican officials at the SEC preparing to revamp the agency’s approach to cryptocurrency regulations, potentially marking a significant shift in policy.
According to sources, commissioners Hester Peirce and Mark Uyeda are exploring steps to introduce clearer guidelines on when cryptocurrencies are classified as securities. Additionally, they are considering a review of ongoing crypto enforcement cases.
With Paul Atkins poised to take over as chair under President Donald Trump, there is growing anticipation that the stringent regulatory stance led by Gary Gensler may soon ease.
Nonetheless, Atkins’ confirmation by the Senate remains a key factor in determining the timeline for these changes.
XRP’s price action
Despite the SEC’s sustained efforts to challenge previous rulings, XRP’s market performance remains resilient. As per CoinMarketCap, XRP was trading at $3.08 at press time, reflecting a 9.21% hike over the last 24 hours.
In fact, a price hike occurred even when the agency filed a Civil Appeal Pre-Argument Statement on 17 October – a sign of its determination to advance its legal battle.
While the token faced some short-term fluctuations amid these developments, the broader market sentiment around XRP has remained optimistic.
Conclusion
Ripple’s ongoing confrontation with the SEC underscores significant shifts within the regulatory landscape for cryptocurrencies. The outcome of these legal battles could set critical precedents for how cryptocurrencies are classified and regulated in the future. As XRP continues to show strength in the face of adversity, the market watches closely as changes in leadership and strategy at the SEC could herald a new era in cryptocurrency regulation.
