Impact of SEC vs Ripple case on XRP ETF

The price of XRP decreased by 2.53% on May 26, 2024, and the session concluded at $0.5282. It is to be recalled that XRP joined the wider crypto market despite policy uncertainties and concerns about the SEC vs Ripple case. The SEC vs Ripple Case has once again brought exchange-traded fund news to the forefront, and crypto news has been updated. On May 26, 2024, there were no updates regarding the SEC vs Ripple Case. The investor community is concerned that the court’s decision in the SEC vs Ripple Case will have a detrimental impact on the American crypto market.

The US cryptocurrency market will remain unaffected by the penalty for violating US security laws. The Securities and Exchange Commission will file an appeal against XRP Sales, and a court ruling is expected in the next few months. The SEC will file an appeal before the American Presidential Election, and the court ruling will impact the crypto market. Other prominent US-based crypto firms like Robinhood Markets and Kraken face legal issues.

The impact of American court judgments on the cryptocurrency marketplace is tangible and evident. At a time when active discussions are taking place about whether crypto is a security or commodity, we expect the SEC verdict. Clarity on the SEC vs Ripple Case will benefit the cryptocurrency spot exchange-traded fund market. 

The Standard Chartered Bank hopes that the SEC approval will pave the way towards the flourishing of XRP Spot ETFs in 2025. XRP Spot exchange-traded funds have been a hot topic of discussion in crypto circles since 2023. Ripple Labs is facing charges of offering unregistered securities, and the SEC dropped charges against Ripple’s CEO the previous year.

It is a fact that the tough legal battle between the SEC and Ripple has finally reached a crucial stage. Ripple’s legal wing chief has criticized the Securities and Exchange Commission’s decision. The recent American regulatory authority verdicts were a loss for Ripple, and they indicate that digital tokens sold through crypto exchanges are not securities. Lots of crypto establishments in the USA were subjected to regulatory scrutiny recently, forcing crypto businesses to shift their operations to other countries. The Securities and Exchange Commission is known for implementing strict security laws for crypto businesses.

Ripple rejected the SEC’s allegations, stating that there was no separate mechanism for cryptocurrency regulations at the time. It is a reality that the SEC verdict will decide the future of crypto regulations and their classification. The uncertainty surrounding cryptocurrency regulation in the USA will come to an end with the anticipated SEC decision. 

The legal encounter between the SEC and Ripple will provide clarification about legal compliance to operate the cryptocurrency business in America. As soon as the SEC verdict is implemented, it will become widely accepted that cryptocurrency sold to institutional investors will be treated as a security. There is dissimilarity between cryptocurrency regulations put forward by different US agencies, like the SEC and the CFTC.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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