SEC vs. Ripple: Who Has the Right to Control the Crypto Market?
Ripple has urged the U.S. Securities and Exchange Commission (SEC) to follow current laws rather than attempt to regulate the cryptocurrency market independently. Ripple asserts that Congress, not regulators, should develop a new legal framework for digital assets.
The SEC has long maintained a stringent stance on cryptocurrencies, applying the Howie test to assess if an item qualifies as a security. However, according to Ripple, this standard has been twisted and is being applied to give the SEC more authority than the laws first put in place.
The corporation stressed in its letter that regulators may only take action within the parameters of the authority granted to them by Congress. Furthermore, Ripple pointed out that rather than drafting additional regulations without a suitable legislative mandate, the SEC should concentrate on safeguarding investors against fraud.
It’s interesting to note that the SEC recently acknowledged that meme coins like Dogecoin and Shiba Inu are exempt from federal securities rules. Ripple valued this move as an illustration of the right strategy. This is merely a unique instance, though, and there is still disagreement concerning the SEC’s overarching approach.
The crypto industry and authorities are still in communication, and in addition to Ripple, other significant participants including Coinbase, Nasdaq, and Robinhood have also sent formal appeals to the SEC outlining their stances.
The question that still has to be answered is whether the SEC has the authority to aggressively regulate the cryptocurrency market without Congressional consent, or if it should stick to the existing legal framework as suggested by Ripple.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.