The recent withdrawal of two key appeals by the SEC may indicate a shift in its crypto regulatory strategy.
SEC Withdraws Appeals
The SEC recently withdrew its appeals related to the classification of crypto firms as securities dealers. A federal court had already ruled that the SEC's regulatory expansion exceeded its authority. An SEC spokesperson mentioned concerns about market liquidity and taxpayer debt. According to experts, under the new leadership, the SEC is adopting a more restrained strategy, moving away from major cases, including those against Coinbase and Binance.
Quote: 'The SEC is stepping back from its aggressive stance on crypto,' says John Reed Stark.
Market Reaction and XRP's Price Movement
Uncertainty surrounding SEC actions has already affected XRP's price. According to CoinGecko, XRP is trading at $2.31, reflecting a 10.38% gain in the past day. However, the token has seen a 10.48% decline over the past week. Investors are waiting for clearer guidance from regulators. While the SEC's softer stance may provide some breathing room for XRP, overall crypto market conditions will continue to play a significant role.
Shifting Priorities at the SEC
The SEC is re-evaluating its approach to crypto regulation under new leadership. Commissioner Hester Peirce is focusing on developing new guidelines for the industry. Recently, the Crypto Unit was renamed to Cyber Unit, possibly signaling a shift from courtroom battles to more effective oversight.
The SEC's withdrawal from its aggressive crypto strategy could significantly alter the landscape for XRP and other cryptocurrencies.
