SEC Suffers Another Legal Blow in Ripple Cryptocurrency Case

  • The US Securities and Exchange Commission (SEC) has lost another case, this time related to SPIKES futures contracts.
  • The Columbia Appeals Court ruled that the SEC’s decision to exempt certain futures products based on stock volatilities from a definition that imposes heavier obligations to promote competition with other indices was arbitrary and capricious.
  • The legal language used in the case mirrors that used by Grayscale in its lawsuit against the SEC, drawing attention to potential implications for the cryptocurrency industry.

The SEC, known for its tough stance on cryptocurrency, has suffered another legal defeat. This time, the case was related to SPIKES futures contracts. The Columbia Appeals Court found the SEC’s decision to exempt certain futures products based on stock volatilities from a definition that imposes heavier obligations to promote competition with other indices to be arbitrary and capricious.

SEC’s Legal Setbacks and Implications for Cryptocurrency

The SEC’s recent legal defeat has drawn attention due to the similarities in the legal language used in this case and that used by Grayscale in its lawsuit against the SEC. This has led to speculation about potential implications for the cryptocurrency industry, particularly in relation to the SEC’s regulatory approach.

Details of the SPIKES Case

The Columbia Appeals Court ruled that the SEC’s decision to exempt certain futures products based on stock volatilities from a definition that imposes heavier obligations to promote competition with other indices was arbitrary and capricious. The court found that the SEC did not adequately explain its reasoning for exempting futures products based on the SPIKES index from the definition of securities-based futures contracts.

Similarities with Grayscale’s Case

The legal language used in the SPIKES case mirrors that used by Grayscale in its lawsuit against the SEC. Grayscale, which applied to the SEC to convert its GBTC fund of approximately 630,000 BTC into an ETF, had its application rejected by the SEC last year. Grayscale subsequently sued the SEC, arguing in the first hearing that the SEC’s decision could not be explained within a logical framework and that the agency acted arbitrarily and capriciously.

Conclusion

The SEC’s recent legal setback in the SPIKES case, coupled with the similarities in the legal language used in this case and Grayscale’s lawsuit, has drawn attention to potential implications for the cryptocurrency industry. It remains to be seen how these developments will impact the SEC’s regulatory approach to cryptocurrencies.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

US Bitcoin Spot ETFs Record $51.3M Net Outflow on Sept 18 — BlackRock’s BIT +$149.7M vs Fidelity’s FBTC -$116M

COINOTAG reported on September 18, citing Farside Investors data,...

Ethereum (ETH) Whale Buys 25,000 ETH for $112.34M in USDC at $4,493 Following Fed 25bp Rate Cut

On September 18, COINOTAG News reported, citing LookIntoChain monitoring,...

Whale Profits $74.92M Scalping ETH — Buys 18,000 ETH with $80.77M USDC via Wintermute, Sparking Rebound to $4,600

COINOTAG reported on September 18 that on-chain analyst yujin...

BlockBeats: ‘Buddy’ Holds 20,400 ETH Longs — $4.23M Floating Profit Across ETH, PUMP & HYPE (Sep 18)

COINOTAG reported on September 18 that monitoring data from...

Vitalik Defends Ethereum’s 45-Day ETH Staking Withdrawal Rule: “Friction Upon Exit Is Inherent”

COINOTAG reported on September 18 that Ethereum co-founder Vitalik...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img