SEC’s grip over crypto under scrutiny

Coinbase and the US Securities & Exchange Commission (SEC) continue to lock their heads in the legal sphere. Coinbase filed an MTD in August, and the community now awaits the final verdict. If favorable, Coinbase would land a judgment on the limits of the Commission. The company believes that the Commission does not have statutory authority to regulate crypto exchanges. Needless to say, the SEC believes otherwise.

US Treasury Secretary Janet Yellen has supported the case. Inadvertently, nonetheless, Coinbase sees this as an imperative way to come out of the dust. The support came in when Janet called to pass legislation for stablecoin and spot crypto regulations. That roughly translates to the fact that there are potholes regarding the oversight responsibilities of US regulators.

A favorable verdict for Coinbase will force the Commission to end its hold on the US crypto market. There is a bleak chance that the SEC will appeal the verdict. The reason is its case against Ripple, wherein it is looking to appeal the Programmatic Sales of XRP tokens.

Judge Analisa Torres earlier ruled that XRP did not satisfy the third prong of the Howey Test. Settlement is in store if the Commission decides to end the legal ruffle with the platform.

XRP’s prices are fluctuating with a lot of ups and downs. The token is currently exchanging hands at $0.5366, down by 1.64% in the last 24 hours. However, it reflects a surge of 3.94% in the last 30 days. The current value is down from the Sunday mark, which was $0.5427. That was a slip of 0.46% to partially reverse the gain of 2.06%. The future of XRP is bullish, with the token estimated to end the year at a mark of more than $1. The legal dispute with the SEC will play an important role here.

The Office of Inspector General’s actions will have the next greatest impact on the crypto market. The Office of Inspector General (OIG) is said to have almost concluded the investigation into the crypto conflicts. These pertain to the agency and its jurisdiction. The focus is on William Hinman, the former SEC Director, who allegedly received millions of US Dollars from his former employer. Hinman may have continued to meet Simpson Thacher despite the SEC Ethics Division issuing several warnings.

A conflict of interest in that area will force the SEC to settle the fight with Ripple. As of now, the agency is doing everything in its power to allow Ripple to present those documents, citing attorney-client privilege.

Ripple versus the SEC will further pave the way for the entire crypto market. It is likely to affect the implementation of the Spot Ether ETF. Or the operation of the crypto market in the US under (or without) the Commission.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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