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SEC’s Cryptocurrency Enforcement Scrutinized After Ripple Case

Published 06/12/2023, 09:39
Updated 06/12/2023, 09:45
© Reuters.  SEC’s Cryptocurrency Enforcement Scrutinized After Ripple Case
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Coin Edition -

  • Ripple’s victory over the SEC has set a new precedent for how the cryptocurrency industry deals with the regulator.
  • Tom Emmer submitted a budget amendment to restrict the SEC’s financial resources in targeting cryptocurrency companies.
  • Both Binance and Coinbase (NASDAQ:COIN) have referenced the SEC vs Ripple case in their own legal battles against the SEC.

Ripple (XRP) revolutionized the cryptocurrency industry after it emerged victorious in its case against the U.S. Securities and Exchange Commission (SEC) in July of this year. Judge Analisa Torres ruled against the SEC’s claim that Ripple misled investors by selling billions worth of unregistered securities.

After the case, many people in the industry expressed their dissatisfaction with the SEC’s conduct. Tom Emmer, a representative of Minnesota’s sixth congregational district, submitted a budget amendment to restrict the SEC’s use of public funds for cryptocurrency enforcement during a congregational hearing on November 8.

Emmer was extremely critical of the SEC in his address, pointing out the fact that the SEC has specifically targeted companies and projects in the cryptocurrency industry for violating regulations. However, the SEC has failed to provide any clear regulations or specific rules for the sector.

So far, Emmer’s budget amendment has not been approved, but it has made its way to the House’s budget measure. The representative hopes that the proposed budget restrictions will limit the SEC’s financial resources for targeting cryptocurrency companies.

XRP’s victory extended way beyond the courtroom as many in the community believe it has set a new precedent for dealing with the SEC. Some companies in the regulator’s crosshairs are starting to push back.

Coinbase and Binance have been sued by the SEC. However, both exchanges have referenced Ripple’s success in overcoming the SEC in their respective legal battles with the regulator.

XRP / Tether US 1D (Source: TradingView)

Ripple’s utility token, XRP, saw its price drop by about 0.17% over the past day of trading, according to CoinMarketCap. This meant that the altcoin was worth about $0.6174 at press time.

XRP’s intraday volume dropped to $1,569,881,440 after it took a more than 15% knock since yesterday. Despite its latest price slip, XRP was still in the green by just over 1% on its weekly time frame.

The post SEC’s Cryptocurrency Enforcement Scrutinized After Ripple Case appeared first on Coin Edition.

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