In the crypto sphere, the slightest regulatory movement can cause a stir. Recently, a verdict from the US Government Accountability Office (GAO) had the effect of a bombshell: the SEC violated the law. This judgment could free Ripple Labs and be a game changer for the regulation of the crypto sector.
A Shame for the US Securities and Exchange Commission
While Gensler alerts crypto firms, the GAO points out an oversight: no report submitted to Congress. A key step, yet mandatory before activating new rules.
This omission is not a simple administrative blunder. Indeed, it raises questions about the transparency and legitimacy of the directives imposed on crypto companies by the SEC.
This verdict exposes a breach in regulatory governance. It points to potential easing for companies such as Ripple Labs, which is in litigation with the SEC.
In July, a US judge’s decision shook the cryptosphere: Ripple’s XRP tokens are not securities. A significant setback for the SEC, which has been entangled in this legal battle for a long time.
The recent GAO verdict could therefore be interpreted as a second round where the SEC finds itself on the tightrope, confronted with its own failings.
Waiting for a favorable outcome for crypto companies
The GAO’s judgment comes as Ripple Labs, creator of the crypto XRP, remains suspended following its clash with the SEC.
However, this recent criticism of the SEC by a government entity could offer Ripple the support it had been hoping for. If they are judged to be biased or unfair, trust in the entire ecosystem falters.
The comments from Blockchain Association Policy Director Jake Chervinsky and amicus curiae attorney John E. Deaton underscore a sense of triumph and vindication among supporters of Ripple and crypto freedom.
They see this GAO conclusion as a potential turning point. This is a moment when regulatory arbitrariness gives way to fair and legitimate governance.
The impact of this revelation goes far beyond Ripple Labs. The echo of this victory resonates throughout the crypto community, injecting a dose of optimism and rebellion against an authority which seems, in their eyes, to have overstepped its bounds.
The GAO’s decision may well herald a period of policy reconsideration and increased transparency in crypto regulation. As the SEC considers its next steps, the crypto community watches vigilantly, ready to defend its rights with renewed faith in the justice system. With this wind of change, the future looks with a tinge of cautious optimism. Block does not wait and makes profits of 44 million in the third quarter of 2023.
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