SEC vs. Ripple case could establish limit on the agency’ future involvement in crypto regulation
According to Charles Gasparino, Senior Correspondent at FOX Business Network (FBN), the SEC case against Ripple will likely determine just how much stroke SEC has in regulating crypto.
The SEC and Ripple have been involved in this lawsuit since 2020
Recently, Gasparino regularly reported on the lawsuit between Ripple and the SEC. According to the latest news, it seems that the power of the SEC will be more clearly divided after the lawsuit. Because at this time, the public almost feels that the agency is too strict and has decisions beyond its authority.
Source: Charles Gasparino
As Gasparino said, if you know Gary Gensler, chairman of the SEC, you know that he will likely cede power or collaborating to engage the crypto industry in a new regulatory regime that is close to ZERO. He will seek to leverage the SEC’s power on this unless Congress or the court’s step in the lawsuit against Ripple.
The blockchain giant has been at war with the securities and exchange commission since December 2020 when the SEC sued Ripple Labs for allegedly issuing and selling unlicensed securities.
Despite being sued by the SEC, they are not taking the suit sitting down and have denied any plans to settle out of court, as AZCoin News reported. According to Gasparino, Ripple’s legal team is confident they can show Gensler in pursuing the case is picking winners and losers in the crypto business to the detriment of innovation.
Gasparino went on to claim that people who are close to Ripple have said the case has hurt XPR’s domestic business in the United States. However, business is booming overseas which is further proof the SEC crypto enforcement agenda is forcing innovation to occur outside the US.
Last month, Hogan said that while many XRP investors hope for a settlement sooner rather than later, the slow nature of the legal process means that the suit is likely to drag on at least until early 2022. Until now, Ripple still has the backing of its shareholders.
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