The Securities and Exchange Commission (SEC) is likely starting to sweat a little given that the Ripple case it worked so hard on hasn’t traveled in its favor.
Ripple May Get the SEC to Back Off
A few weeks back, a judge in New York of all places (New York is often considered a very unfriendly place when it comes to digital assets) ruled that Ripple wasn’t necessarily a security, and while not all the legal ramifications or doors have been closed yet, things are moving in the right direction for the crypto enterprise and its token XRP.
The SEC had introduced a lawsuit against the firm back in 2020. The financial agency looked at the structure and history of Ripple and decided that it fell into the “securities” category, and thus should have been classified as one. As it never was, a court battle ensued, and it appears Ripple (for now, at least) has come out on the winning end.
For the past several months (and even years), the SEC has made a habit of bullying cryptocurrency companies and assets. The real issue here is not that Gary Gensler – the man in charge of the SEC – is a schoolyard thug looking to get these companies to do what he wants. The worst thing is that the agency is taking a “regulation through enforcement” attitude towards the crypto arena. It hasn’t done anything to try and establish legitimate rules so enterprises could fall in line and remain compliant.
This suggests many things, a big one being that the SEC is not interested in rules or legitimacy. Rather, it’s simply looking to make a statement and establish itself as the head honcho of the American financial infrastructure, and it’s doing this by being a jerk to everyone else. However, once you stand up to a bully, it’s likely the opposer will back off and leave you be, and that’s exactly what Ripple did. It announced that it wouldn’t allow itself to get kicked and punched unjustly. It fought back and won, and it’s giving the SEC a well-deserved headache.
Suddenly, the Agency Doesn’t Seem so Powerful
Of course, there are other lawsuits from the SEC in the mix. Two big ones right now involve Coinbase and Binance, which are among the largest digital exchanges in the world. However, while at first it seemed like these suits were set and done and the SEC was going to get its way in the field of “non-justice,” the Ripple case certainly throws a monkey wrench into the bucket, and the future remains unclear.
Could Coinbase and Binance also walk away unscathed as Ripple has? If so, the SEC is in line for some massive beatings, and perhaps all this could lead to the easing of financial bullying and intimidation.
