Key Point
- US SEC is under fire after posting a rather unconvincing press release detailing that they won against Ripple in some cases where the crypto company had tried to introduce an unconventional law.
- The crypto community is calling out the US SEC for its tendency to want to regulate the crypto industry greedily.
Voices have been raised against US SEC following its recent loss in the case against Ripple regarding XRP being security. The crypto community feels that authority should have been fair, meaning they would have expected SEC to have an outright win.
The crypto community celebrates a win against the US SEC
The crypto community has come together to celebrate another massive win against the US SEC after the judge officiating the case between the regulator and Ripple ruled in favor of Ripple that Primary markets sale of XRP does not constitute properties of a securities asset.
The SEC has fallen prey to an unforgiving crypto community after posting an official press release that ‘celebrates’ its win against Ripple, claiming that the crypto company tried to formulate its own rules.
A statement in their press release reads:
“ The court agreed with the US SEC that the Howey Test governs the securities analysis of crypto transactions and rejected Ripple’s made -up test as to what constitutes an investment contract, onstead emphasizing that the Howey test and subsequent cases have held that a variety of tangible and intangible assets can serve as subject of an investment contract.”
The US SEC continued:
“ Further, the court rejected Ripples fair notice argument noting that Howey test is clear and that claiming ignorance is not a defense to violating the securities laws. We’ll continue to review the decision.”
This development has been received with open arms by crypto exchanges like Coinbase, which is in a similar court battle with the US SEC. Coinbase has relisted XRP and claims that the win from Ripple is a win for the industry, developers, and investors.
Binance.US, which has a court battle with the SEC, is also impressed by the development as it plans to relist XRP/USDT pair on 7/14 at 9 am ET.
The crypto community has also reacted to the story, with investor Scott Melker calling out the US SEC for their unpopular press release. Scott asks the US SEC to digest the developments rather gracefully.
Ripple CEO Brad Garlinghouse was also included, as he notes the important part of the ruling. He tweeted saying:
“The most important part of this ruling: “XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.” This is a now a matter of law (not up for trial.).”
Watch Fintech Express for more updates on crypto regulation and other fintech-related developments.