The U.S. Securities and Exchange Commission (SEC) is considering postponing the Ripple case, updating its strategy towards the cryptocurrency market.
Changes in SEC's Cryptocurrency Strategy
The SEC has begun to follow a different path in its regulatory strategy regarding the cryptocurrency market. The agency’s team, previously known as the “Crypto Assets and Cyber Unit,” has been restructured as the “Cyber and Emerging Technologies Unit.” This change indicates a more cautious and long-term perspective from the SEC towards the sector. The motions filed in the Coinbase and Binance cases reveal the SEC’s desire to suspend the proceedings. Documents submitted to the court indicate that the newly established Crypto Task Force could contribute to resolving these cases. Legal experts believe this development may also reflect on the Ripple case.
Growing Expectations for the Ripple Case
Former SEC official John Reed Stark commented on social media that the delays in the Coinbase and Binance cases could impact the Ripple case. This remark has heightened expectations among XRP investors. The Ripple case involves an ongoing legal battle regarding whether XRP is a security. A partial court ruling in 2023 determined that XRP is not a security for certain transactions. However, the SEC has appealed this ruling, arguing it does not apply to all transactions.
Expert Opinions and Possible Outcomes
Attorney Jeremy Hogan suggested that the SEC might resolve the Ripple case before the cryptocurrency ETF approval process. This possibility indicates that the case may reach a conclusion sooner than anticipated. The future of the Ripple case could significantly influence how the legal framework surrounding the cryptocurrency market develops.
The potential shift in SEC's approach to cryptocurrencies might significantly impact the Ripple case and the further development of the crypto market's legal framework.
