XRP has captured attention as it surpasses the $3 mark for the first time in seven years. This surge is bolstered by expectations of a potential ETF approval in 2025, along with anticipated changes by the SEC.
SEC’s Application Against Ripple
The SEC’s application against Ripple focuses on specific sales and distributions rather than XRP’s security status. In 2023, the court confirmed that XRP does not constitute a separate investment contract, and therefore, does not fall under the security classification.
Shift in SEC’s Market Approach
Recent developments have prompted scrutiny of the SEC’s regulatory approach towards cryptocurrencies. A recent court ruling criticized the SEC’s guidance to Coinbase, asserting that the commission has not provided adequate clarity for the crypto sector.
Future Regulation and Market Implications
Ripple stated that the SEC’s appeal is merely an attempt to preserve its defenses, expecting the new SEC leadership to dismiss the case entirely. Recent criticisms of the SEC’s policies toward the cryptocurrency sector and court rulings continue to impact the overall market dynamics.
The ongoing legal battles and regulatory changes from the SEC could have a significant impact on the cryptocurrency market in the coming years.
