SEC vs. Ripple verdict could come at pivotal time for crypto industry

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The future of crypto industry could hinge on one court case involving the Securities and Exchange Commission and Ripple, a provider of crypto solutions for businesses.

Travelers disconnected from the crypto industry likely see the signage as just another corporate advertisement in a train station. Most probably don’t know that Ripple is one of the biggest names in the crypto industry, the vendor of a cross-border payments solution that uses blockchain technology.

The Securities and Exchange Commission is studying ways to make it more feasible for cryptocurrency trading platforms to register with the agency as exchanges, Chairman Gary Gensler said Monday Apr. 4th 2022 in a regulatory void In recent months, Judge Torres has sided with Ripple on various motions, including its demands for emails and other documents from SEC officials in an effort to show the agency may have unfairly targeted Ripple. Those documents were also designed to show how the SEC may have failed to give Ripple what’s known as "fair notice" that its sales of XRP were illegal since the agency brought the case long after the company began issuing the tokens.

. Crypto’s legal status, thus, is open to interpretation by the SEC and the CFTC, resulting in a turf war of sorts over which regulator should regulate the asset class. It would also decide whether the SEC’s current test for classifying securities should apply to digital assets. Known as the Howey Test, which resulted from a 1946 Supreme Court decision, it determines what qualifies as an investment contract, and thus is subject to U.S. securities laws.

 

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I’m Great article.I think as far as Judge Torres goes, the law is the law, It’s her job to interpret how this case is ruled by law. I don’t think that she would have a choice but to rule for Ripple if the law directs, no matter what happened with Banks, FTX, or any other crypto.

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