• The SEC is targeting crypto companies that issued tokens without following regulations.
• Ripple is one such company and its executives are hopeful about winning the case.
• Following this news, XRP rose by 20 percent, providing a boost to the crypto markets.
SEC’s Case Against Ripple
The Securities and Exchange Commission (SEC) has been attacking digital currency companies in the last six or seven years for issuing tokens without following present regulatory rules. One of these targeted firms is Ripple, whose native digital token XRP experienced a sharp price hike in late March as investors and fans felt they had reason to believe Ripple could potentially win its ongoing court case with the SEC.
Ripple’s Hope of Winning
Monica Long – president of Ripple – issued a supplemental notice expressing her optimism that “the facts and the law” were on their side, leading many to believe that Ripple stands a chance against the SEC. This caused XRP to rise by 20 percent from 45 cents per token.
Reactions from Industry Leaders
Vijay Ayyar – vice president of international crypto exchange Luno – argued that crypto markets have seen an increase as traders anticipate a slow-down in interest rates and inflation. Furthermore, Long commented that Europe has set clear regulations which allow both traditional finance and crypto companies to embrace cryptocurrencies.
Kraken Fined by SEC
Another firm attacked by the SEC was trading platform Kraken which was forced to pay a $30 million penalty fee ending all staking services and activities according to Gary Gensler -SEC Chair-.
It remains uncertain how this case will play out; however, if Ripple wins it could prove to be a massive win for them while also setting an example for other firms facing similar issues with the SEC.