Markets
XRP News Today: Market Outlook Improves Thanks to Recent SEC Rulings Against Crypto Courts
Potential Outcomes for SEC vs. Coinbase
Coinbase filed a Request for interlocutory appeal in April, asking the court for permission to appeal the motion to dismiss (BAT) decision.
For context, Coinbase filed a motion to dismiss in August, arguing that the SEC lacked the legal authority to regulate crypto exchanges. Judge Katherine Failla deniedfor the most part, the motion to dismiss, assuming,
“The court concludes that, to the extent the Complaint’s well-founded allegations plausibly support the SEC’s contention that Coinbase operated as an unregistered securities intermediary, Defendants’ motion should be denied in big party. »
If Judge Failla grants Coinbase’s interlocutory appeal, Coinbase could cite the SEC’s decision against Binance in its appeal. Overturning the dismissal decision could end the era of enforcement regulation and the debate over whether cryptocurrencies are securities or commodities.
Importantly, court rulings rejecting cryptos as securities give the Commodity Futures Trading Commission (CFTC) greater authority over the digital asset space in the United States.
Will the crypto market benefit from CFTC oversight?
XRP and the broader cryptocurrency market could benefit from greater CFTC involvement for three reasons:
- Ending the debate over whether cryptocurrencies are securities could pave the way for XRP-spot ETFs and a broader crypto-spot ETF market.
- Support passage of the Lummis and Gillibrand Act on Responsible Financial Innovation.
- Reduce the chances of the Digital Assets Anti-Money Laundering Act becoming law.
The Responsible Financial Innovation Act would give the CFTC more authority over the digital asset space in the United States. Additionally, the bipartisan bill would support innovation while protecting American consumers.
In contrast, the Digital Asset Anti-Money Laundering Act proposes anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks for the digital asset space in the United States. Senators Elizabeth Warren and Roger Marshall drafted the bill with the assistance of the American Bankers Association.
The bill seeks to impose bank-like regulations on the US digital asset space under the SEC’s purview.
In conclusion, court decisions denying cryptocurrencies securities status could empower the Commodity Futures Trading Commission (CFTC), fostering a more favorable environment for innovation. This change could pave the way for XRP spot ETFs and reduce legislative hurdles.