SEC vs Ripple Labs: A Recap
In July, Ripple Labs scored a partial victory against the SEC as the court ruled that XRP is not a security. This was in stark contrast to what the regulatory body had intended for the cryptocurrency industry. Larsen claimed that the regulator “lost on everything” that mattered to them and the industry.
Criticism of the SEC
Moreover, Larsen pointed out the court’s recent decision in favor of Grayscale over its application to convert its Bitcoin trust into a spot Bitcoin ETF. He stated that this ruling “really admonished the SEC”, a scenario that hardly ever happens. Larsen has shown optimism that this could mark the beginning of the end of the SEC’s policy of regulation by enforcement, which he considers to be a failure.
I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.
— Chris Larsen (@chrislarsensf) September 6, 2023
Call for Congressional Intervention
Larsen hopes that the courts’ dismissive stance towards the SEC’s regulatory approach may lead to Congress stepping in to lead on crypto policy. He believes that such intervention could provide the clarity and direction that the industry desperately needs.
What does Ripple Labs’ victory mean for the crypto industry?
According to Larsen, the court’s ruling in favor of Ripple Labs is an indication that the courts do not concur with SEC’s stand on regulation by enforcement. This could imply that the legal system will play a key role in regulating the industry henceforth.
What does the SEC’s loss signify?
The loss signifies a major setback for the SEC’s attempts to regulate the crypto industry. An unfavorable ruling against its enforcement policies could provoke a reevaluation of these strategies.
What changes does Larsen expect in the future of crypto industry?
Larsen envisions congressional intervention in future, which could provide the much-needed clarity and direction for the crypto industry. He believes that a regulatory approach led by Congress, rather than enforcement by regulatory bodies, can help revitalize the industry.