A recent development in the SEC’s case against Kraken has sparked debate in the crypto community. Kraken’s chief legal officer, Marco Santori, shared a post on X outlining the ruling of the Federal Court for the Northern District of California that tokens traded on Kraken are not considered securities.
Today, the Federal Court for the Northern District of California ruled that none of the tokens traded on Kraken are securities.
This is a significant win for Kraken, for the principle of clarity, and for cryptocurrency users around the world. It also confirms Kraken…
— Marco Santori (@msantoriESQ) August 23, 2024
Industry leaders, including Ripple’s chief legal officer Stuart Alderothy, took note of the ruling. Alderothy emphasized the significance of the ruling, saying it reinforces the idea that the term “crypto asset security” is fundamentally flawed.
The result challenges the SEC’s “regulation by enforcement” approach, which relied on classifying crypto assets as securities to police the industry. Pro-cryptocurrency attorney Bill Morgan echoed that view, highlighting how the ruling aligns with Judge Torres’ reasoning in SEC v. Ripple, further undermining the SEC’s position.
Today’s ruling in SEC v. Kraken further validates Judge Torres’ reasoning in SEC v. Ripple that a token itself is not a security. https://t.co/jrp4ZpUJyv pic.twitter.com/UbaoUb8MJd
— Bill Morgan (@Belisarius2020) August 24, 2024
In the Binance case, Judge Jackson ruled that Binance’s BNB token sales on secondary markets were not securities. The ruling, which broke with previous rulings, prompted Coinbase to question the inconsistent approach to regulation across exchanges.
Coinbase Chief Legal Officer Paul Grewal highlighted the differences in how U.S. district courts interpret cryptocurrency transactions, acknowledging the challenges exchanges face in operating in the current legal environment.
Despite legal victories from other exchanges, the price of XRP remains below key levels. At press time, XRP was trading at $0.60962, down 0.27% over the past day.
The daily chart of XRP shows a consolidation phase, with the price moving between $0.40 and $0.75 over the past year. Technical indicators such as the MACD and RSI are showing cautious bullish sentiment, with the MACD line crossing above the signal line and the RSI at 58.48.
The outlook for the XRP market remains uncertain as traders await clearer signals before making any significant moves.
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