Ripple’s Victory Over SEC Gives Hope to the Crypto Industry in the US

Liputan6.com, Jakarta The legal win between cryptocurrency developer Ripple and the US Securities and Exchange Commission (SEC) provides hope for other crypto companies,

Reporting from Yahoo Finance, Tuesday (18/7/2023), according to experts this victory will encourage crypto companies such as Coinbase and others to resist the SEC’s efforts to assert its jurisdiction over the crypto industry.

The ruling on Thursday, July 13, 2023 found that Ripple Labs did not violate securities laws by selling the cryptocurrency XRP Coin on exchanges. This defeat was the first major setback for the SEC in a decade of enforcement against the cryptocurrency industry.

The crypto industry has recently been under intense scrutiny by the SEC and its chairman, Gary Gensler, who describes the crypto market as a wild industry full of scams.

The SEC also said that while most crypto tokens are securities, the SEC has been cracking down on crypto trading platforms, including top US exchange Coinbase, in a bid to bring the industry under its watch.

The SEC case with Ripple

In 2020, the SEC sued San Francisco-based Ripple and its former chief executive, alleging they made an offer of USD 1.3 billion in unregistered securities by selling XRP coins, created by the founders of Ripple in 2012.

US District Judge Analysis Torres in New York on Thursday ruled his sale on a public cryptocurrency exchange was not a security offering because buyers did not have reasonable profit expectations depending on Ripple’s efforts.

However, he also decided that Ripple’s direct sales of XRP to investors should have been registered as securities, giving the SEC a partial victory.

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