Recent victories for Ripple and the cryptocurrency sector as a whole were modest since June 13 was a significant day for the industry.
The day included hearings for Binance and the Financial Committee on clarity for digital assets in addition to the public release of the widely-discussed records of former SEC officer William Hinman. The SEC’s answer to the crypto exchange Coinbase’s request for regulation on digital assets was sent on June 13th.
Crypto researcher William Mougayar lists six little victories that the industry experienced as a result of these occurrences.
The regulator may be procrastinating and feels trapped if the SEC requests 120 days to reply to Coinbase’s regulatory deadline.
The judge’s decision regarding Binance is second.US, which declined the SEC’s demand for an asset freeze and urged the two sides to engage in negotiations instead.
Third, the recently made public Hinman emails exposed the SEC’s contradictions. Fourth, the hearing on transparency for digital assets held by the finance committee went well. Mougayar cited a passage from the hearing that showed Gary Gensler, the chair of the SEC, to be inconsistent.
Fifth, Mougayar refers to a video from 2018 in which SEC Chair Gary Gensler stated that Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are not securities.
The most recent modest victory in the Custodia Bank Case ranks sixth. According to reports, the founder of CryptoLaw singled out this case as one of the most crucial for cryptocurrency. Custodia Bank was allowed permission to conduct discovery last week after the Fed’s petition to dismiss was denied.
Hinman documents exposed regulatory gaps: Ripple GC
Stuart Alderoty, the general counsel at Ripple, tweeted his thoughts on the Hinman emails shortly after they were made public. He points out that Hinman’s statement showed regulatory flaws and was unrelated to the Howey considerations.
We can all now see that Hinman disregarded repeated warnings that his speech exposed regulatory loopholes, had made-up analysis without a legal foundation, would cause market uncertainty, not just current confusion, but even more confusion, according to Alderoty.
When a token becomes “sufficiently decentralised,” according to William Hinman, then-head of the SEC Corporate Finance Division, it ceases to be a security. He also created criteria to take into account when determining whether a token is “sufficiently decentralised.”
