- Historic Ripple Case Decision
- Criticisms in Payward Inc and Binance Cases
- Recent Events and SEC's Further Actions
In recent legal rulings, judges have criticized the U.S. Securities and Exchange Commission's (SEC) approach to cryptocurrency regulation, particularly in its classification of digital assets as securities.
Historic Ripple Case Decision
Attorney and XRP enthusiast Bill Morgan highlighted these criticisms in a thread of tweets. In the SEC v. Ripple case, Judge Torres stated unequivocally that the XRP token itself is not a security, dealing a significant blow to the SEC’s argument that XRP, by merely existing as a digital asset, falls under securities regulation.
Criticisms in Payward Inc and Binance Cases
Morgan also highlighted that in the SEC v. Payward Inc (Kraken case), Judge Orrick told the SEC that 'orange groves are no more securities than cryptocurrency tokens are,' delivering a pointed critique of the SEC's approach. Judge Orrick warned the SEC to maintain a clear distinction between the nature of the crypto asset and its sales. In the SEC v. Binance, Judge Jackson completely rejected the SEC’s theory that a crypto token is the embodiment of an investment contract.
Recent Events and SEC's Further Actions
So far this year, the SEC has sent Wells notices, filed lawsuits, or reached settlements with a number of crypto firms such as ShapeShift, TradeStation, and Uniswap. Centralized exchanges and trading platforms like Coinbase, Kraken, Binance, and Robinhood have all been involved in legal disputes with the regulator. Earlier this month, Ripple scored a significant win as the court slashed the SEC's demand by nearly 94%, ordering Ripple to pay $125 million, ending the nearly four-year legal battle. In the most recent development, cryptocurrency marketplace OpenSea was added to the SEC’s list of targets as the regulator continues its crackdown on the sector. OpenSea's CEO stated that the SEC issued a Wells notice alleging that the NFTs sold on its platform are securities, which he characterized as a 'move into uncharted territory.'
Recent legal rulings indicate growing resistance to the SEC’s approach to crypto regulation, which may lead to a reassessment of the agency's methods and impact the future of the crypto industry.
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