– The SEC is targeting Ripple, a digital currency firm, over allegations that they issued tokens without following regulations.
– Ripple’s President has expressed confidence in the company’s ability to beat the case and XRP prices surged by 20% in response.
– Kraken, another crypto firm, was recently forced to pay a $30 million penalty fee and end its staking services.
SEC’s Case Against Ripple
The Securities and Exchange Commission (SEC) is taking action against crypto firms that took part in token offerings or provided interest or other rewards through token investments, believing that these tokens are securities and thus not meeting present SEC regulations. Additionally, the agency has been particularly targeting Ripple due to their digital token XRP. However, Monica Long – the current president of Ripple – has stated her belief that the “facts and the law” are on their side and expressed hope for a win for the crypto company. Following her comments, XRP saw a sharp increase of 20%.
Kraken Fined By SEC
Another crypto firm who faced sanctions from the SEC was trading platform Kraken located in Northern California. They were penalized with a $30 million fee as well as having to end all its staking services and activities. In response, SEC Chair Gary Gensler commented on this situation saying there have only been “a handful of tokens [that] have registered” which emphasizes Europe’s leadership when it comes to setting clear regulations for both traditional finance and cryptocurrencies alike.
Ripple responded positively after Long’s assurance about their case against the SEC with investors feeling confident about their chances of victory. In addition to this, Vice President of International Crypto Exchange Luno Vijay Ayyar commented on why he believes crypto markets rallied recently: because of “the anticipation of a pause or slowdown in interest rates” as well as an inflation slowdown occurring soon too.
A Win For Cryptocurrency?
If Ripple does succeed in winning their case against the SEC it could be seen as a major victory for cryptocurrencies worldwide as they will be able to continue operating without fear of stiff penalties or fines from governing bodies such as the United States government. This could also potentially encourage other digital currency companies currently being targeted by various agencies across different countries around the world to take similar legal action against them too so they can keep doing business without fear of prosecution either now or in future years ahead when laws become stricter regarding cryptocurrency investment activities.
In conclusion it is unclear whether or not Ripple will win its court battle with the Securities and Exchange Commission but many investors feel optimistic about their chances given what has been said by Long so far on behalf of her company. Ultimately though only time will tell if cryptocurrency businesses such as these will be able to operate legally within US jurisdiction going forward into 2021 and beyond without government interference being an issue at any point during this period once more stringent rules regarding token investments come into effect later this year according