Legal Expert Notes Shift in SEC’s Cryptocurrency Regulation Approach
Legal expert, Mike Selig, has observed a strategic shift in the approach of the Securities and Exchange Commission (SEC) towards regulating cryptocurrencies, indicating a more cautious stance in its legal actions against crypto companies. This observation, highlighted by Selig, follows the SEC’s lawsuit against the cryptocurrency exchange Kraken. Selig suggests that the SEC, possibly concerned about the outcomes of future cryptocurrency-related cases, is strategically engaging multiple district courts to assess the security status of cryptocurrency secondary sales, potentially leading to a Supreme Court decision.
In the recent lawsuit filed by the SEC against Kraken, well-known cryptocurrencies Cardano (ADA) and Solana (SOL) were classified as securities by the commission. Notably, XRP, which was central to Ripple’s recent legal battle with the SEC, was not included in the alleged securities in the Kraken lawsuit.
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Despite the lawsuit, Kraken remains committed to its mission and clients, both in the United States and globally, ensuring that its current services are unaffected. Kraken’s CEO, Dave Ripley, strongly rebutted the SEC’s claims, arguing that Kraken does not list securities and pointing out the lack of clear regulatory guidance for cryptocurrency exchanges. Ripley’s statement emphasizes the need for congressional action to remove the regulatory fog surrounding cryptocurrencies in the United States.
Neglecting Investor Protection?
In a recent interview with CNBC, the SEC was criticized for deviating from its mission of investor protection. Brad Garlinghouse, CEO of Ripple, expressed concerns about the SEC’s approach to regulating cryptocurrencies at the Ripple Swell event in Dubai. He stressed the necessity of clear federal laws governing digital currencies, rather than relying on litigation to set precedents. This criticism comes after Ripple’s legal victory in July, where a judge ruled that XRP was not a security, significantly impacting the current legal landscape of digital assets.
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