The United States Securities and Exchange Commission (SEC) has resolved one of the longest-running legal battles in the cryptocurrency world, which opens up new opportunities for industry-wide regulation.
End of SEC and Ripple Labs Legal Conflict
The SEC and Ripple Labs have ended their nearly five-year legal dispute, filing to dismiss their appeals and agreeing to bear their own costs. This decision was made last Thursday with the Second Circuit Appeals Court.
SEC Officials Comments on Crypto Regulation
SEC Commissioner Hester Peirce referred to the case's conclusion as a 'welcome development' that allows for a focus on creating a clear regulatory framework for crypto. SEC Chair Paul Atkins noted that now there is an opportunity to shift from courtroom battles to policy drafting that fosters innovation while protecting investors.
Support for the CLARITY Act on Digital Asset Markets
The conclusion of the case coincides with the advancement of the Digital Asset Market Clarity Act, known as the CLARITY Act. This bill aims to define the structure of digital asset markets. Republican lawmakers in the Senate Banking Committee are pushing to pass the bill by September 30, despite growing opposition from Democratic Party members.
Thus, the conclusion of the SEC's case against Ripple Labs not only resolves longstanding legal issues but also paves the way for further defining regulatory norms in the cryptocurrency industry.
