Markets
XRP News Today: Market Outlook Improves on Recent SEC vs. SEC Rulings Crypto Court
Potential Outcomes for SEC vs. Coinbase
Coinbase filed suit Motion for Appeal of Instrument in April, asking the court for permission to appeal the Motion to Dismiss (DMT) decision.
For context, Coinbase filed the motion to dismiss in August, arguing that the SEC lacked the legal authority to regulate cryptocurrency exchanges. Judge Katherine Failla deniedfor the most part, the motion to dismiss, assuming,
“The court concludes that because the well-stated allegations in the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered securities intermediary, Defendants’ motion should be denied in large part.”
If Judge Failla grants Coinbase’s Interlocutory Motion to Dismiss, Coinbase could cite SEC v. Binance in its appeal. Successfully overturning the Motion to Dismiss ruling could end the era of regulation through enforcement and the debate over whether cryptocurrencies are securities or commodities.
Significantly, the court rulings rejecting cryptocurrencies as securities give the Commodity Futures Trading Commission (CFTC) greater authority over the U.S. digital asset space.
Will the Crypto Market Benefit from CFTC Oversight?
XRP and the broader crypto market could benefit from greater CFTC involvement for three reasons:
- Ending the debate over whether cryptocurrencies are securities could pave the way for spot XRP ETFs and a broader spot cryptocurrency ETF market.
- Support passage of the Lummis and Gillibrand Responsible Financial Innovation Act.
- Reduce the chances of the Digital Asset Anti-Money Laundering Act becoming law.
The Responsible Financial Innovation Act would give the CFTC more authority over the US digital asset space. Additionally, the bipartisan bill would support innovation while protecting U.S. consumers.
In contrast, the Digital Asset Anti-Money Laundering Act proposes anti-money laundering (AML) and combating the financing of terrorism (CFT) frameworks for the U.S. digital asset space. Senators Elizabeth Warren and Roger Marshall drafted the bill with the assistance of the American Bankers Association.
The bill aims to impose banking-type regulations on the US digital asset space under the purview of the SEC.
In conclusion, court rulings denying cryptos as securities could strengthen the Commodity Futures Trading Commission (CFTC), fostering a more innovation-friendly environment. This change could pave the way for XRP spot ETFs and reduce legislative hurdles.