The US Securities and Exchange Commission (SEC) has been pursuing a tough policy against the crypto industry for several years. Several lawsuits initiated by the SEC have already done significant damage. But that could change now that the SEC’s influence appears to be waning.
SEC Loses Ground Over Grayscale Lawsuit
Earlier this week, crypto asset manager Grayscale won its lawsuit against the SEC. That means the SEC should reconsider making GBTC a so-called spot ETF. Grayscale has been trying to pull this off for years.
But the SEC has yet to approve a fund of this type, including Grayscale’s. News of the win immediately led Bloomberg analysts to believe that other Bitcoin exchange funds were much more likely to be approved than Grayscale’s. This Friday is even the deadline for deciding on any of these funds.
IIn July, the SEC also suffered a partial loss in the lawsuit against Ripple Labs. The judge determined that secondary sales of XRP are not covered by the Securities Act.
SEC loss good for US cryptocurrencies
There is also optimism at the global law firm K&L Gates. K&L Gates partner and crypto advocate Jeremy McLaughlin spoke at Australia’s Intersekt23 conference. Cointelegraph attended the conference. The lawyer emphasized that it is difficult to advise clients as there is hardly any clear crypto regulation in the US. He described this as very frustrating.
In the early years of crypto, the market was regulated state-by-state, which was relatively easy for lawyers to do. But since the SEC and the Commodities Futures Trading Commission (CFTC) got involved, things have gotten a lot more complicated. Trading platforms have decided to stop selling tokens, and some companies have even left the US altogether.
But with more pressure on the SEC, the US crypto industry could bounce back. We are already seeing this as various platforms are again offering XRP to customers, such as Coinbase and Gemini.
