• The SEC vs. Ripple Suit Is The Decisive Factor In Crypto Regulations In The United States, According To Fox

  • Fox: The SEC vs. Ripple case could determine the agency’s ability to regulate cryptocurrency in the future, and it may not be over.

    The outcome of the SEC lawsuit against Ripple, according to Charles Gasparino, a journalist who occasionally appears on Fox Business Network as a panelist, may bring some clarity to the powers the SEC may have over the cryptocurrency industry in the future.

    This is a common observation, as the case’s outcome could be a turning point for the entire cryptocurrency industry. The SEC has filed a lawsuit against Ripple, accusing the company of selling its cryptocurrency, XRP, without first registering it.

    The circumstances surrounding the allegations, on the other hand, appear to have been murky from the start. Investors in Ripple and XRP have argued that the SEC is being unfair because they did not apply the same argument to Ethereum, which was created using a similar method.

    The comparison is not without merit, as Ethereum, like Ripple, conducted what appeared to be an initial coin offering (ICO) in 2014 to raise funds for the development of its platform. The SEC, on the other hand, has given Ethereum a pass, claiming that the platform has been fully developed and is now only available as a commodity.

    This is why XRP holders are now suing the SEC, accusing its officials of profiting from Ethereum. Gasparino claims to have documents that detail these allegations. One of the reasons he believes another body, such as the Biden administration’s working committee on cryptocurrencies, should step in to clarify the situation is because of this.

    The journalist also suggests that Congress pass legislation to clarify regulatory uncertainty and limit the SEC’s regulatory enforcement in order to avoid stifling innovation in the nascent industry. Commissioner Hester Pierce of the Securities and Exchange Commission has also recommended this.

    In a recent development in the case, Ripple and co-founder Chris Larson responded to the SEC’s response to their motion for clarification on the application of the Howey Test to XRP sales over the last eight years. According to the filing, the SEC’s response to their motion constituted a “refusal to comply with basic obligations imposed on all parties” under the law, as posted on Twitter by attorney James K. Filan. It goes on to list the interrogatories that the commission refused to answer and suggests that the court dismiss the case.

    The SEC, on the other hand, claims that Ripple is seeking the answers and all other documents in order to mount an improper defense and call into question the credibility of the commission and its staff.

    The next date on the lawsuit agenda is September 20: the deadline for Brad Garlinghouse’s (Sept 14) and Chris Larsen’s (Sept 20) depositions, which were supposed to take place in August. On September 28, Ripple will have the opportunity to respond to the SEC’s letter brief. The defendants are expected to file a motion opposing the SEC’s arguments, along with relevant commentary.

    What's your reaction?