By Shelly Melancon (Switzerland)
The crypto community continues to await the outcome of the lawsuit between one of the most powerful regulatory agencies in the world and one of the biggest cryptocurrencies in the market. The case is keenly followed by crypto lovers and the legal community interested in the growing need for crypto laws and regulations.
In December 2020, the US Securities and Exchange Commission accused Ripple Labs of selling unregistered securities. The SEC later instituted a legal case against Ripple’s CEO, Brad Garlinghouse, and the case has dragged on since March this year. The SEC and Ripple labs are yet to announce an agreement or settlements, but the case has developed over the last 6 months.
Although it looks like the case is making no headway, Garlinghouse has now expressed his confidence about the case. This happened when he was interviewed by CNBC at Abu Dhabi during the fintech festival held there. Garlinghouse said that there was good progress in the lawsuit between the SEC and Ripple Labs.
Shortly before saying that, he had noted that several countries were making positive developments in cryptocurrency regulations despite the judicial processes being slow. Garlinghouse would later tweet that Ripple would be hiring more workers in 2022 as they prepare for growth and developments. The SEC has not reacted to Garlinghouse’s statement as of writing; typical of them.
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According to Garlinghouse, the SEC vs. Ripple case, which has now dragged on for almost a year, might be close to being resolved soon. He said that the judge hearing the case is now asking more and deeper questions, as he has realized the potential impact that the outcome of the case might have. Gralinghouse said that the case is no longer just about Ripple.
Garlinghouse maintains that the outcome of the case has implications on other cryptocurrencies and may impact the way regulations affect them. He took time to praise the regulatory efforts in Japan and the UK, which he said were taking positive steps in crypto regulations. Recall that Ripple had asked for the SEC’s role in the crypto industry to be limited.
It is also noteworthy that a former chairman of the CFTC, Christopher Giancarlo, has said that Ripple did no wrong by selling its XRP tokens as the XRP is not classified as a security. His comments drew applause from the XRP community which regularly references Giancarlo’s statements as a point in their defense of the XRP token.
But whatever resolution is reached, it would have an impact on the regulation of other cryptocurrencies in the market today.
Crypto Regulation In the US
Although the SEC has not slammed strong regulations on cryptocurrencies, it is expected that certain working principles will be released soon to govern the way Americans interact with crypto assets. The principles will be used alongside the existing financial regulations and laws to make crypto safe for everyone.
Last month the President’s Working Group on finance released a white paper in which it recommended a dozen steps for the government to implement.
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