The SEC guides its attention to the development of a clear regulatory framework for the cryptocurrency markets after the conclusion of its legal battle of almost five years with Ripple Labs.
In short
- The SEC ended his legal battle for almost five years with Ripple Labs, releasing resources to focus on drafting clear regulations on cryptocurrencies.
- The president of the SEC, Paul Atkins, and Commissioner Hester Peirce declare that the agency can now favor the construction of a framework promoting innovation while protecting investors.
- The conclusion of the case comes as the Congress debate from the Clarity law, faced with a strong partisan division on the legislation of digital assets.
From court to the development of rules
Last Thursday, Ripple and the SEC both filed a request to abandon their calls before the Court of Appeal of the second circuit and agreed to bear their own costs, ending one of the most followed cases in industry.
The commissioner of the Sec Hester Peirce described the resolution of “Welcome development”noting that the spirits formerly occupied by litigation can now focus on the creation of a robust and transparent policy. The president of the dry Paul Atkins replied:
With this closed chapter, we now have the opportunity to transfer our energy from the court to the policies' editorial table. Our goal must be to build a clear regulatory framework that promotes innovation while protecting investors.
The long litigation between the dry and ripple
The SEC continued Ripple in December 2020, alleging that it had raised $ 1.3 billion through unregistered XRP sales as financial titles. In July 2023, judge Analisa Torres ruled that the XRP was not a title when it was sold to retail investors, but that it was during institutional sales. Ripple was sentenced to a fine of $ 125 million in August 2024.
The conclusion of the case coincides with legislative efforts to adopt Digital Asset Market Clarity Act (Clarity Act), intended to define the structures of the digital asset markets and to provide regulatory certainty.
Pressure for Clarity Law
Republican legislators and the Senate banking committee seek to have the bill adopted by September 30, although it faces a resistance from the main democrats.
The oldest member of the Financial Services Committee of the House of Representatives, Maxine Waters, qualified the bill ” dangerous, “ warning that it could weaken investors' protections. Democrats have also opposed the anti-CBDC surveillance State Act, a separate bill supported by Republicans aimed at prohibiting a digital central bank currency in the United States. While the political debate is intensifying, the next SEC actions will be closely monitored both by legislators and by the crypto industry.
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