The court ruling on the SEC v. Ripple – XRP case has generated renewed hope that the SEC will have to back away from its current regulation-by-enforcement approach when it comes to digital assets. CI has received multiple comments from industry insiders and digital asset legal experts on the ruling. Comments continue to roll in.
Today, Alex Adelman, CEO & Co-founder of Lolli, a Bitcoin rewards app, described the court decision as an immense victory for the crypto industry in battling the SEC’s approach.
“The landmark ruling establishes a powerful legal precedent that digital tokens sold on exchanges are not in and of themselves securities. The ruling is also the biggest challenge to the SEC’s authority over cryptocurrencies to date and could narrow the scope of the agency’s ability to regulate the industry,” said Adelman.
He added that the digital asset industry has long desired regulatory clarity and the court decision has shown that the SEC’s actions will not go unchallenged while providing ammunition for other digital asset firms.
“This is a moment of celebration for the cryptocurrency industry as digital tokens have been recognized in court as separate and apart from investment contracts,” added Adelman. “However, it is also a call to Congress that the absence of clear and responsible regulation for crypto will continue to result in confusion and drawn out litigation. It is time for the U.S. to establish a comprehensive framework that regulates crypto as a unique, varied asset class that is here to stay.”
David Wells, CEO of Enclave Markets, said the ruling supports the need for Congress to craft a framework for crypto exchanges.
“The XRP news highlights the important role of exchanges as accessible trading venues for digital assets, and it enables increased investment into infrastructure for the growing asset class. Exchanges that create and uphold healthy market structures, free from preferential treatment, will thrive as they improve upon the structural deficiencies of the last bull market,” Wells stated.
Wells added that next-gen trading platforms must address critical market inefficiencies such as front running, unfair access to data and more. He said that mitigating this issue will require protecting institutional and retail trading activity and their strategies through tech-driven security and confidentiality.
