The cryptocurrency industry is continuously changing. Recently, what happened in the court of Southern New York surprised everyone because it could mean a completely different future for investors, brokers, and crypto exchange platforms.
Although there is still a long way to go, Ripple’s victory is reshaping the legal aspects of cryptocurrencies. In this article, you will learn about what happened and how this could affect everyone’s future when it comes to buying and selling cryptos.
This year, the Securities and Exchanges Commission has engaged in different enforcement efforts against various platforms, including Coinbase, Bittrex, and Binance. According to the agency, they are unregistered trading websites.
In the past, the SEC has made different allegations about tokens’ and coins’ regulatory status. However, it wasn’t until recent events that other organizations fought back.
The US District Court in Southern New York ruled in favor of Ripple. According to some crypto exchange platforms, such as Gemini, now they can offer the token.
Nonetheless, legal experts say that it is too early to determine the exact future of Ripple and other cryptos. Instead, they’re constantly reminding people that cryptos are still not securities under US law.
Even so, defendants are now more motivated after the court ruling. Law enforcement agents decided that certain XRP distributions and token sales weren’t investment contracts.
Numerous experts have said that the SEC might change its opinion due to what happened in the New York court. Apparently, it could significantly influence the landscape for the future or affect the success of the agency’s efforts.
Furthermore, Binance and Coinbase can now defend themselves against allegations of operating as unregistered brokers, clearing agencies, and securities exchanges.
Considering how the SEC is handling things, other experts suggest that it’s not time to get overexcited. On the contrary, they tell people to calm down since the future is still uncertain.
These professionals, for instance, argue that the SEC will justify its views by looking for the part of the court decisions that support the agency. Therefore, the organization will say that they’re all securities and try to enforce that perspective in the whole industry.
Although some view Ripple’s victory as a significant win, others support the previously mentioned aspects and add that what happened was fact-specific. In other words, applying it to different cases might be very challenging, which is why the future of the industry is still at stake.
Unfortunately, the only thing that’s true so far is that Ripple’s victory was a significant advantage, but it won’t provide any legal clarity regarding other issues that the digital assets industry currently faces.
What Will Happen in the Future?
The idea that cryptocurrencies are securities has led to confusion in the past. After the court ruled in favor of Ripple, that changed, and many people were quick to say that the people in charge of making the decision were on the right side of history.
There is no way to tell what will happen in the future for sure. However, experts have said that if the decision remains the same after the appeal, the SEC’s jurisdiction over the cryptocurrency industry will change, allowing many people to invest in crypto freely and use tools like Immediate Granimator to make profit.
Other courts or district rulings don’t have to follow what the New York court said. Nonetheless, what has happened set some ground for the future, especially when it comes to pending litigation about secondary market activity.
There is still a long way to go when it comes to Ripple’s case because some of the requests will proceed to trial. Even so, what happened shocked everyone in the industry and it could mean a new future for brokers and investors.