SEC Case Against Ripple: Could Crypto Company Score a Win?

• The SEC has been actively going after firms that issued tokens or provided interest through token investments.
• Ripple is one of the companies targeted by the SEC, and their president Monica Long recently expressed her optimism that they can win their case against the agency.
• Following this announcement, XRP experienced a 20% price increase and other crypto firms such as Kraken have also been targeted by the SEC for similar violations.

SEC Going After Firms Issuing Tokens

The Securities and Exchange Commission (SEC) has been actively going after firms that issued tokens or provided interest through token investments, believing that these tokens are securities and thus did not follow present regulations when issuing said currencies to traders.

Ripple Optimistic About Court Case with SEC

One of the companies the SEC has taken aim at is Ripple, the native digital token of crypto firm Ripple. Recently, Monica Long, president of Ripple expressed her optimism in a supplemental notice that she believes facts and laws are on their side in their court case against the SEC. This resulted in a sharp 20% surge in XRP prices.

Other Crypto Companies Targeted by SEC

In addition to Ripple, other crypto firms have also been victimized by the SEC. Trading platform Kraken was forced to part with a $30 million penalty fee and end all its staking services and activities due to similar violations. Gary Gensler – Chairman for the SEC – commented on this situation saying “There’s a handful of tokens that have registered”.

Europe Leading Way for Crypto Regulations & Rules

Long further stated in an interview that Europe is leading the way when it comes to setting clear regulations and rules around cryptocurrencies so both traditional finance institutions as well as crypto companies can embrace it more easily.

Conclusion

It remains to be seen how successful Ripple will be in winning its court case against the SEC but investors remain hopeful based on what Monica Long had said about facts being on their side. While some crypto firms may face penalties due to violating existing regulations, Europe is leading the way towards creating clearer rules so more entities can embrace cryptocurrencies more freely moving forward.