Ripple is celebrating the US Securities and Exchange Commission (SEC) decision not to pursue a court case against the firm, but it provides a slight legal certainty for the crypto industry.
The US finance regulator seems to have dropped an appeal against Ripple, the release of the Crypto Asset XRP firm. The industry has seen the case as a key example of SEC overreach regulation under former chairman Gary Gensler.
Ripple CEO Brad Garlinghouse said the decision was “providing a lot of certainty for the Ripple” and that while the case was effective, there were still some loose end of the firm that needs to be tied to the SEC. “We’re in the driver’s seat to determine how we want to continue.”
Stuart Alderoty, Ripple’s Chief Legal Officer, write In X, “Today, Ripple is moving forward – stronger than ever before. This landmark case has set a precedent for the domestic crypto industry.”
The Ripple and the crypto industry as a whole count it as a major success, but the SEC decision does not provide legal preceding, and the “guardrails” that the industry has not yet been determined.
Consequences of ripple case in making law and preceded
The cryptocurrency lobby quickly celebrated the SEC’s decision, which Garlinghouse announced at the Digital Asset Summit in New York on March 19. Markets noticed – the XRP price sparked 9% in the first hour following the announcement.
Supporters and observers have been posted to X about the previous case will be set for the crypto industry. But legal observers are less specific about the overall impact of the SEC’s appeal decision in the broader crypto industry.
Lawyer Aaron Brogan told Cointelegraph that the Ripple case “creates a nonsense that any other firm can rely on.” He added that there is no “question that the regulation environment is more interesting to crypto companies today,” but the exact SEC policy will not be clear until Paul Atkins has been appointed chairman of the Commission.
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Brian Grace, general advice on the Metaplex Decentralized Autonomous Organization, further noted that the 2023 decision of which the SEC was attracted to not set a legal preceding.
He wrote on March 19, “The Ripple’s decision does not bind to the legal preceding. It is a decision of the district court judge based on the facts of that case.”
Removal of Appeal in the SEC has a limited influence on the ongoing legislative effort to create a framework for the Cryptocurrency industry in the US. Grace said Onus is in Congress, not the SEC, to make long -term legal changes for the cryptocurrency industry.
“The US crypto industry requires new law to provide clarity and protection. Without it, plaintiffs can continue to sue district courts across the country depending on Howey. A friendly SEC does not change. We need Crypto market structural law,” Says.
Brogan said he did not think the decision would have a direct impact on the law -making process, but the SEC could still solve questions about deciding.
“I think many in Congress will be accepted that while the law of the market structure is currently surprisingly it appears to be dead in water,” he said.
Garlinghouse wants to tie the loose end to the SEC
The Appeal’s decision on the SEC may Put the “Final Exclaim Point” If the XRP is a security, but the legal battle between the ripple and sec can be set to irritate.
In a March 19 Bloomberg interview, Garlinghouse raised the possibility of going to the offensive with a cross-appeal, that is, an appeal from an Appellee asking for a higher court to review a lower court decision.
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That is, Garlinghouse wants to revisit the 2023 decision in which Judge Analisa Torres, while the ruling public selling tokens does not form a security, Imposes a $ 125 million fine with ripplestating that tokens should be sold to institutional investors.
The firm is also subject to a five -year “bad actor” prohibition on fundraising which, says Brogan, can significantly affect its operations.
“At this point, all we are fighting for is that we want to fight to get the $ 125 million,” Garlinghouse said.
He added that while the XRP-Securities decision was a “clear legal success,” there were “pieces of it that we think could be kind of cleaned. And the question is, do we want to fight that battle? Or can we be with the SEC to drop everything?”
Outside the court, Congress is still working to make significant development in the Stablecoin Bill. Bo Hines, the Executive Director of the President’s Council of Counselor in Digital Assets, Expected to be the final version will be prepared within a few months.
Crypto Framework Bill Fit 21 failed to do so through the Senate in 2024 legislative session, but some lawmakers are optimistic make This is through this session with “moderate change.”
The Blockchain Association, a Crypto lobby group, Looking forward to both laws to be passed By August, while US representative Ro Khanna, a Democrat from California, says they can befinalize By the end of the year.
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