TL;DR Breakdown
- The success of Ripple and Coinbase against the SEC directly correlates with how the market will turn out in a few days.
- The SEC stalls the decision on how to proceed with the cases it has against crypto entities.
- Ripple has increased its portfolio of regulatory licenses in the United States by acquiring Fortress Trust.
Description
In the intricate tapestry of crypto regulation, few narratives have commanded as much attention, speculation, and dramatic flair as the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the company behind one of the largest crypto by market cap, XRP. This legal odyssey has not only sent ripples across … Read more
In the intricate tapestry of crypto regulation, few narratives have commanded as much attention, speculation, and dramatic flair as the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the company behind one of the largest crypto by market cap, XRP.
This legal odyssey has not only sent ripples across financial waters but has called into question fundamental concepts like “What constitutes a security?” and “How should digital assets be regulated?” Now, entering stage right in this high-stakes drama is Coinbase—a leading crypto exchange whose role has evolved from a mere bystander to a consequential actor, complicating an already multi-dimensional chess game.
Ripple, Coinbase, and SEC are in the same regulatory box
On Friday, XRP gained 0.40%. XRP started the day at $0.5052, somewhat correcting a 0.36% loss from the previous day. According to reports, the SEC has until the end of today to respond to the Ripple opposition filing to the SEC petition for interlocutory appeal.
If the Ripple file is not responded to, the spotlight will turn to Judge Torres and her decision on the SEC’s motion for interlocutory appeal. While legal analysts believe Judge Torres will deny the SEC’s motion, the germ of doubt keeps XRP range-bound.
The XRP community will be on pins and needles if an interlocutory appeal is successful. It is unclear how long Judge Torres will deliberate before rendering her decision.
While the SEC must react to Ripple’s submission by today, investors are waiting for the outcome of Coinbase’s (COIN) move to dismiss (MTD). Judge Failla presided over the SEC v Coinbase case.
Republican Senator Cynthia Lummis and other interested parties filed Amicus Curiae petitions in August requesting that presiding Judge Failla dismiss the case.
Republican Senator Cynthia Lummis and other interested parties filed Amicus Curiae petitions in August requesting that presiding Judge Failla dismiss the case.
The SEC charged Coinbase with operating as an unregistered securities exchange, broker, and clearing agent in June. Other allegations included the unregistered offering and sale of securities in connection with staking products.
A successful request to dismiss might relieve Judge Torres of his duties. Judge Failla may dismiss the lawsuit if the Howey test is not met. Such a decision would support the Programmatic Sales of XRP decision.
The SEC’s reaction to the Ripple objection filing is expected to be the main point. However, investors should keep an eye on developments in the SEC v. Coinbase lawsuit. A decision by Judge Failla would have a greater influence on investor sentiment.
Ripple acquires Fortress Trust amid the war with SEC
Ripple will not be held back by the SEC’s indifference. According to a statement made on September 8, the entity is increasing its portfolio of regulatory licenses in the United States by acquiring Fortress Trust.
Fortress Trust provides blockchain organizations with regulatory and technological infrastructure. The company has a Nevada Trust license, which permits it to keep financial assets in its custody. The acquisition adds to Ripple’s more than 30 money transmitter licenses around the country, as well as a BitLicense in the state of New York dedicated to virtual currency enterprises.
According to the statement, Fortress Trust’s technology and licensing complement Ripple’s business and product roadmap.
Ripple made its first investment in the startup in 2022 through a seed round. The most current transaction amounts and other financial terms have not been disclosed.
As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, they’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers.
Brad Garlinghouse, CEO of Ripple
Despite the bear market, Ripple has been speeding transactions. In May, the business announced the $250 million acquisition of Metaco, a Swiss digital asset custodian and tokenization provider. In January, Ripple executives predicted that 2023 will witness a surge of acquisitions in the crypto field, assisting corporations in filling capability gaps.
According to the release, Ripple intends to invest in Fortress’ main company, Fortress Blockchain Technologies, as well as its connected firm FortressPay services. Ripple claims to be present in over 55 countries, providing blockchain-based payout services.
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