Australia-based attorney Bill Morgan has revealed that the United States Securities and Exchange Commission’s (SEC) main target is crypto’s regulatory status in the ongoing legal dispute and not exclusively XRP.
US SEC Target’s Findings On Crypto Status
For a long time, the SEC has maintained that it has the authority to regulate digital assets because they are securities, just like stocks and bonds, which could be the reason why Morgan believes the SEC is majorly targeting all cryptos.
Bill Morgan previously highlighted all cryptos are at risk except XRP and Bitcoin due to certain of the SEC’s claims made in the Coinbase case, which the judge deemed plausible enough to allow the lawsuit to proceed.
Drawing attention to the SEC’s interlocutory appeal of last year, Morgan stated that he forewarned a second portion of the statement that XRP was computer code with no inherent value. Since he believes the SEC would make allegations that cryptocurrencies are not like commodities.
As a result, an X user questioned that given that the SEC already declared that they would not appeal the decision that XRP is not a security, can they now make a change and file an appeal? Furthermore, the user asked if Ripple has any grounds for an appeal if the SEC decides to alter their minds later on.
Responding to the user, the Australian lawyer stated that his point is that the regulatory watchdog does not have to appeal the decision that XRP is not a security.
Rather, the court’s determination that cryptos themselves might not be securities and are only computer code with no intrinsic value, but any sale of crypto on the primary or secondary markets must be an investment contract is where the Commission hopes this battle will end.
This is because, after all, no one would purchase an asset if they did not anticipate making money off of someone else’s labor. Therefore, this suggests the agency might be primarily focusing on the regulatory status of every crypto asset and not mainly on XRP.
On July 13, 2023, Judge Analisa Torres of the Southern District of New York ruled that XRP by itself is not a security. Despite the judge’s ruling on the digital asset’s status, the SEC is still strong-willed that XRP sales on public exchanges constitute securities.
Impact Of The Lawsuit On Cryptocurrencies
For more than three years, Ripple and the US regulatory watchdog, SEC, have been embroiled in litigation. The SEC v. Ripple case is significant for the cryptocurrency market since it may provide transparency on the SEC’s classification of cryptos and their regulatory status.
Some hope that the conclusion of the legal battle might bring about the anticipated shift in the SEC’s approach to the cryptocurrency landscape. Nonetheless, the community is currently looking forward to the grand trial on April 23, which might lead to the resolution of the lawsuit.