While recent court decisions haven’t directly impacted XRP’s price, a cloud of uncertainty hangs over the cryptocurrency due to the potential for a Securities and Exchange Commission (SEC) appeal in the ongoing Ripple Labs lawsuit.
The SEC could still pursue an appeal of Judge Torres’s July 2023 ruling once the lawsuit is concluded. This ruling categorized XRP as an unregistered security. An SEC appeal will bring a fresh drawback, which the XRP community could avoid if there is a chance to decide.
Read Also: Just In: SEC Says Ripple and XRP Victory Is Wrong, Set To Appeal: Details
The crux of the Ripple case hinges on the SEC’s claim that XRP sales from 2013 constituted unregistered securities offerings.
Judge Sarah Netburn’s ruling in March 2023 provided a reprieve for Ripple by granting it access to internal SEC documents related to its cryptocurrency classification framework. This access exposed inconsistencies within the SEC’s approach to regulating digital assets.
However, recent developments in other crypto-related lawsuits might embolden the SEC to appeal the Programmatic Sales ruling. In separate cases, Judge Katherine Failla rejected Coinbase’s motion to dismiss charges related to unregistered securities offerings.
Also, Judge Paul G. Friedman ruled that Terraform Labs and its founder Do Kwon offered unregistered securities through TerraUSD (UST) and Luna. These rulings suggest a willingness by courts to entertain the SEC’s arguments regarding certain cryptocurrencies being securities.
SEC’s Appeal Victory Implications
A SEC appeal victory could have far-reaching consequences for the U.S. crypto market. It could grant the SEC broader authority to oversee cryptocurrency sales, potentially leading to stricter regulations and increased scrutiny of Initial Coin Offerings (ICOs). This, in turn, could dampen investor enthusiasm and hinder the growth of the U.S. crypto industry.
On the other hand, the recent string of legal setbacks for the crypto industry has also intensified calls for regulatory clarity from lawmakers. The lack of a comprehensive regulatory framework creates uncertainty for investors and businesses operating in the crypto space.
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Read Also: XRP Lawsuit: Legal Expert Shares Likely Timeline of SEC’s Potential Appeal
Increased scrutiny of the SEC’s actions and growing public interest in cryptocurrencies, could compel U.S. Congress to intervene and establish a clear set of rules governing the crypto market. Although this has started considering the recent development in the United States Senate, more like this is expected from Congress.
While the immediate future of XRP remains uncertain, one thing is clear: the legal battle between Ripple and the SEC has significant implications for the entire U.S. crypto industry. The outcome of this case will likely shape the regulatory landscape for cryptocurrencies in the years to come.
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