• The SEC has been targeting crypto companies, including Ripple, for token offerings and other rewards without following regulations.
• Investors became hopeful after Ripple’s President Monica Long stated that the facts and law are on their side and they could potentially win the court case.
• SEC Chair Gary Gensler commented on the Kraken settlement, noting that there is a handful of tokens that have registered with them.
SEC Case Against Ripple
The Securities and Exchange Commission (SEC) has been actively targeting crypto companies for token offerings or providing interest or other rewards through token investments without following present regulations. One of these firms is crypto firm Ripple, whose native digital token XRP experienced a sharp price hike in late March when investors felt they had reason to believe they could potentially win their ongoing court case with the SEC.
Monica Long – current president of Ripple – released a supplemental notice expressing her hope that the SEC case will result in a win for the digital currency firm. She mentioned that she believes “the facts and the law” are on their side, which caused XRP’s price to rise by 20%. Vijay Ayyar of international crypto exchange Luno also discussed how overall markets have rallied due to anticipation of slowing inflation and interest rates.
Another crypto firm victimized by the SEC was Kraken from Northern California who had to pay a $30 million penalty fee as well as end all staking services and activities. In response, SEC Chair Gary Gensler said there is only a handful of tokens that have registered with them.
It remains to be seen whether or not Ripple can beat the odds against this powerful agency and come out victorious in this court case. However, investors remain hopeful given Monica Long’s statements about favoring facts and laws over enforcement-style regulation. Europe appears to be leading innovation when it comes to setting clear regulations regarding traditional finance embracing crypto.
Moving forward, more clarity may be brought into how firms such as Ripple should proceed when issuing tokens so they don’t face penalties such as those suffered by Kraken if found guilty by the SEC again in future cases like this one.