What It Means for the XRP Lawsuit
CEO Brian Armstrong said the SEC is filing a lawsuit against Coinbase. However, the commission’s lawsuit against Ripple is still open and has raised more questions.
Both lawsuits involve the securities status of certain cryptocurrencies, not commodities. For Coinbase, this explanation will hinder operations, but can be fatal to XRP issuers.
SEC drops Coinbase Suit
Brian Armstrong, Coinbase Founder and CEOHave a good day. Recently, the company has been Advocate better U.S. crypto regulationsa major milestone was achieved today. Armstrong Announce The SEC waived its lawsuit in 2023.
“Good news! After years of litigation, your millions of taxpayers have spent money, causing irreparable harm to the country, we have reached an agreement with SEC staff to dismiss the lawsuit against Coinbase. Once With approval from the committee (we were told that they will be approved next week), it would be a complete dismissal with a fine of $0 and our business changed to zero,” he said.
Armstrong called the development a “great defense”, claiming that boycotting the committee’s “mafia tactics” under previous leadership was a real challenge.
He also said the lawsuit is a pioneering future development of U.S. cryptocurrency, as it will significantly hinder the ability of exchanges to conduct business nationwide. For Coinbase, the SEC legal battle has emerged.
However, the SEC has another active crypto lawsuit – Its struggle with ripples. The two sets of lawsuits have major similarities, both relying on the notion that certain crypto goods are securities. This explanation makes encryption-related businesses open to stricter regulations.
How will co-settlement affect XRP litigation?
For Coinbase, the problem is that the SEC insists on a lack of clarity on these categories, essentially claiming that it can require any token on the exchange to be on a whim. However, in the ripple effect, it claimed that the company was banned from raising funds through XRP token sale without registering.
In both cases, SEC relies on standards that lack encryption standards.
Even before today’s announcement, the SEC had It has been shown that it will incur charges on Coinbasebut this process is more vague to Ripple. Committee Recent Deleted XRP lawsuit from its website,may be Wait for wider changes to completely refute it.
Ultimately, however, the chain reaction may be more complicated. The SEC said Coinbase is custodying certain illegal assets and comply with business models that will seriously affect all exchanges.
In the latter lawsuit, it claimed that the sale of XRP itself was a security violation, which would seriously affect a large number of token projects.
The SEC has taken some measures to lay the foundation for broader policy adjustments. Commissioner Peirce claims it wants Officially delete some tokens’ security status.
In addition, the committee is looking for Reduce crypto enforcement activities Generally speaking. Overall, the Coinbase case does provide some optimism for the XRP community.
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