The recent development in the SEC vs. Kraken case has sparked a debate within the crypto community. Kraken’s Chief Legal Officer Marco Santori had shared a post on X outlining the Federal Court for the Northern District of California’s citing tokens traded on Kraken do not qualify as securities.
Today, the Federal Court for the Northern District of California ruled, as matter of law, that none of the tokens trading on Kraken are securities.
This is a significant win for Kraken, for the principle of clarity and for crypto users everywhere. It also confirms Kraken’s…
— Marco Santori (@msantoriESQ) August 23, 2024
Industry leaders, including Ripple’s Chief Legal Officer Stuart Alderoty, have taken notice of the ruling. Alderoty emphasized the significance of the court’s decision, stating it reinforces the idea that the term ‘crypto asset security’ is fundamentally flawed.
This outcome poses a challenge to the SEC’s regulation-by-enforcement approach, which has relied on classifying crypto assets as securities to exert control over the industry. Pro-crypto lawyer Bill Morgan echoed this point, highlighting how the decision aligns with Judge Torres’ reasoning in the SEC vs. Ripple case, further undermining the SEC’s stance.
The decision in SEC v Kraken today is another endorsement of Judge Torres’ reasoning in the SEC v Ripple decision that the 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 did not constitute securities. This ruling, diverging from previous decisions, has prompted Coinbase to question the inconsistent regulatory treatment across different exchanges.
Coinbase’s Chief Legal Officer, Paul Grewal, highlighted the differences in how U.S. district courts clarify crypto transactions, acknowledging the challenges faced by exchanges in dealing with the current legal environment.
Despite the legal victories for other exchanges, XRP’s price remains below key levels. As of press time, XRP was trading at $0.60962, witnessing a decline of 0.27% over the last 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 suggest a cautious bullish sentiment, with the MACD line crossing above the signal line and the RSI sitting at 58.48.
Source: TradingView
The market outlook for XRP remains uncertain, as traders are waiting for clearer signals before making any significant moves.