If you ask Ripple lawyer John E. Deaton, the US authorities will soon be exposed. Judge Michael E. Wiles previously ruled in the Voyager Digital case that lawmakers added fuel to the fire and created additional uncertainty in a young market. The constant search for control means that many parties get into trouble and that is not the intention, according to Wiles.
Will the SEC face the same fate?
You may have noticed that Ripple has long been embroiled in a legal battle with the US Securities and Exchange Commission. The subject of the lawsuit is the question of whether Ripple’s XRP token qualifies as a security for US law.
Ripple believes this is not the case, but the SEC believes it is. If the SEC is right with their story, there is a chance that Ripple will receive huge fines and the token will disappear from the exchange platforms. It is not allowed to list securities on a stock exchange platform without a license.
“If you can characterize the current legislative climate as uncertain, then the future climate of legislation and regulations can only be qualified as unknowable,” said the judge. He therefore mainly calls for clarity and puts the blame on the American authorities.
According to Deaton, this is a sign that the SEC is losing the case. “The truth is the SEC has no law on its side,” said a combative Deaton.
The SEC is beating itself up
Incidentally, the SEC can be called particularly active within the crypto world this year. Earlier this year, Gemini got the financial regulator on its roof and Kraken and Paxos followed later. Kraken was told to shut down its strike program in the United States.
Paxos, the issuer of the Binance USD (BUSD) stablecoin, suddenly had to stop issuing new BUSD. As a result, they can only manage the existing BUSD circulation, but not bring any new tokens onto the market.
That means the SEC has decided to let this Paxos stablecoin, which had a market cap of more than 15 billion, die a slow death.