The US Securities and Exchange Commission (SEC) is disappointed with a recent court ruling. The ruling found that Ripple Labs Inc did not violate federal securities laws. Ripple sold XRP on public exchanges, according to the court.
The ruling was handed down on July 13 and dealt a blow to the SEC’s efforts to regulate cryptocurrencies. The SEC accused Ripple of selling XRP as an unregistered security. However, the judge disagreed, stating that XRP was not an investment contract and therefore not a security.
SEC Chair Gary Gensler expressed disappointment with the decision. The SEC is still assessing the court’s ruling and considering its options.
The ruling is a significant victory for Ripple and the cryptocurrency industry. It may enable other cryptocurrency companies to sell tokens without SEC registration. Nonetheless, it’s worth noting that the ruling is only the initial judgment and could be appealed by the SEC.
The ruling also poses a setback for the SEC’s cryptocurrency regulation efforts. The SEC’s slow and cautious approach has faced criticism. This ruling could encourage other cryptocurrency companies to challenge the SEC’s authority.
It remains uncertain how the SEC will respond to the ruling. Nevertheless, it is evident that the ruling is a major setback for the SEC’s cryptocurrency regulation endeavors.
