• The SEC has been targeting crypto companies, particularly Ripple, over the past few years.
• Many investors believe that Ripple could potentially win its current court case with the SEC and XRP’s price rose 20% in response to this news.
• Gary Gensler commented that only a handful of tokens have registered with the SEC so far.
SEC’s Case Against Ripple
The Securities and Exchange Commission (SEC) has been taking action against digital currency firms which took part in token offerings or provided interest or other rewards through token investments without following present SEC regulations. One of these companies is Ripple, whose native digital token XRP experienced a sharp price hike in late March due to investors believing it had a chance to beat the SEC.
Ripple’s Hopeful Outlook
Monica Long, president of Ripple, released a supplemental notice expressing her optimism that their case would result in a win for them as she believed the facts and law were on their side. Following her comments, XRP rose by 20%. Vijay Ayyar from crypto exchange Luno said this was likely due to anticipation of a pause or slowdown in interest rates.
SEC Taking Action
The SEC is continuing to take action against crypto firms not adhering to regulations – trading platform Kraken was forced to pay $30 million penalty fee and end all staking services and activities as punishment for not registering with the agency. In response, Chair Gary Gensler noted that only a handful of tokens have registered so far.
Europe Leading Crypto Regulations
Monica Long also mentioned that Europe is emerging as a leader when it comes to setting clear regulations for both traditional finance and cryptocurrency companies alike.
While it remains unclear whether Ripple can overcome this legal battle with the SEC, many investors are hopeful that they will be victorious – something which could result in major positive implications for cryptocurrency markets worldwide.