The SEC has announced the withdrawal of several lawsuits against major cryptocurrency companies, while the case against Ripple is still ongoing.
SEC's Shift in Lawsuit Policy
The U.S. regulator has announced the termination of legal proceedings against major market players such as Coinbase and Binance. This change aligns with the current SEC leadership's more lenient policy towards cryptocurrencies. The SEC has also dropped lawsuits against Robinhood, Uniswap, Gemini, and OpenSea, which reflects a new direction in U.S. crypto industry regulation.
Ripple's Ongoing Legal Battle
Despite the SEC's change in approach, the lawsuit against Ripple, launched in December 2020, continues. The SEC accuses Ripple of selling XRP tokens as unregistered securities. This raises the question: why does Ripple remain in the spotlight?
Implications for the Crypto Market
The outcome of Ripple's legal struggles could significantly impact the entire crypto industry. A Ripple victory could set a precedent for future legal proceedings and outline new approaches to cryptocurrency market regulation. Conversely, a negative outcome could enhance the SEC's ability to regulate cryptocurrency firms.
The SEC's decision to drop lawsuits against major crypto market players, but keep them against Ripple, forms a new regulatory trajectory in the U.S. While some companies receive relief, Ripple continues to seek opportunities for settlement and future plans, such as an IPO, which could ultimately influence the entire market.
