SEC Drops Five-Year-Long Ripple Lawsuit, Ending Legal Battle Over XRP
The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Ripple, marking the end of a five-year legal dispute over the status of the XRP cryptocurrency. Ripple CEO Brad Garlinghouse announced the decision in an X post, calling it a victory for the company and the broader crypto industry. However, the SEC’s move remains subject to a final Commission vote. Ripple Lawsuit Ends After Years of Legal Dispute The SEC first sued Ripple in 2020, alleging that the company violated securities laws by selling XRP as an unregistered security to institutional investors. The case became a landmark battle in crypto regulation, with Ripple challenging the SEC’s stance on digital assets. In 2023, U.S. District Judge Analisa Torres ruled that XRP was not a security in certain sales, dealing a major blow to the SEC’s argument. The ruling was seen as a key moment in the regulatory landscape, influencing how digital assets are classified under existing securities laws. Garlinghouse described the lawsuit as an attempt by the SEC to intimidate the crypto industry. He emphasized that while former SEC Chair Jay Clayton initiated the lawsuit, current Chair Gary Gensler aggressively pursued it. Impact on Crypto Regulation and Future Outlook Garlinghouse said the case has paved the way for clearer regulatory guidelines in the crypto industry. He noted that Ripple’s legal battle set a precedent that could benefit other crypto firms facing similar challenges. The lawsuit’s resolution comes amid shifting regulatory attitudes in the U.S. Garlinghouse pointed to changes in leadership within the executive and legislative branches as an opportunity to shape a more balanced approach to crypto regulation. With the case now closed, Ripple is expected to focus on expanding its business without the legal uncertainty that had loomed over it for years. Meanwhile, the SEC’s decision not to pursue an appeal signals a potential shift in how regulators approach digital assets going forward.
SEC and CFTC to Unite for Joint Oversight of Crypto Industry Regulations
According to popular Fox Journalist Eleanor Terrett, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are in discussions to enhance their collaboration on the regulation of digital assets. One proposed step is to reinstate the charter for the CFTC-SEC joint advisory committee, which has been inactive since 2014. This committee was originally formed in 2010 to facilitate discussions on emerging regulatory issues that impacted both agencies . The renewed collaboration comes as digital assets have increasingly become a top priority for US regulators. As the cryptocurrency market grows, the need for a cohesive regulatory approach between the SEC and CFTC has become more pressing, particularly in areas where the jurisdictions of the two agencies overlap. Recall that in yesterday’s publication, we reported that United States President Donald Trump has selected Brian Quintenz, current Head of Policy at Andreessen Horowitz’s (a16z) crypto division and a former CFTC commissioner, to serve as the CFTC’s permanent chairman. The changes underscore concentrated efforts targeted at reforming regulatory guidelines in the US. Calls for Cooperative Approach, with SEC and CFTC Collaboration CFTC acting Chair Caroline D. Pham has been a vocal advocate for reforming the advisory committee. Last year, Caroline emphasized the importance of the committee as a symbol of a new, cooperative regulatory approach to digital assets. He believes that revitalizing the committee would help ensure that both agencies are aligned in their regulatory strategies and able to address challenges in the rapidly evolving crypto space. The SEC and CFTC have distinct roles in regulating digital assets, with the SEC overseeing securities-related aspects and the CFTC focusing on commodities and derivatives markets. However, the increasingly blurred lines between these areas have made it difficult for both agencies to navigate crypto regulations independently. A joint advisory committee could provide a platform for sharing information and developing cohesive strategies to regulate the complex and fast-moving digital asset market Cekijp. Strengthening US Crypto Regulation The proposal to revive the advisory committee is seen as a positive step toward greater coordination between the two regulatory bodies, which is seen as crucial for establishing clearer and more effective regulations for cryptocurrencies and other digital assets. It also reflects growing recognition of the need for comprehensive regulatory frameworks that can adapt to the rapid growth and innovation in the digital asset space. Both agencies have faced pressure to implement stronger oversight of the crypto market in the wake of high-profile volatility and incidents within the sector. A unified approach between the SEC and CFTC is expected to provide clarity and stability, which could benefit both investors and businesses operating in the digital assets space.
Gensler Era Ends with a 30% Decline in SEC Cryptocurrency Actions
According to a report released by Cornerstone Research, the United States Securities and Exchange Commission (SEC) brought 33 cryptocurrency-related enforcement actions in 2024, a 30% decline from the previous year. Interestingly, last year’s figure marked the first year-over-year drop since 2021. The decline coincided with the final year of SEC Chair Gary Gensler’s administration, which ended December 31, 2024.The report, titled SEC Cryptocurrency Enforcement: 2024 Update, highlighted a sharp decrease in administrative proceedings, which dropped by more than 50% compared to 2023, while litigation in U.S. district courts fell slightly. Despite fewer actions, monetary penalties imposed in 2024 reached a record $4.98 billion, largely due to a multi-billion-dollar settlement. “Cryptocurrency enforcement remained a priority during Chair Gensler’s final year,” said Simona Mola, the report’s author and a principal at Cornerstone Research. Half of the 2024 enforcement actions were brought in September and October, shortly before the November presidential election. The SEC focused on cases involving fraud, market manipulation, and unregistered broker-dealer activities, maintaining its emphasis on applying the Howey test to cryptocurrency-related cases. Comparing SEC Leadership Approaches The report also compared enforcement trends under Gensler to those under his predecessor, Jay Clayton, who served as SEC chair from 2017 to 2020. Under Gensler’s leadership (2021–2024), the SEC initiated 125 cryptocurrency-related enforcement actions and resolved 98 of them, significantly surpassing Clayton’s 70 actions and 50 resolutions. Monetary penalties under Gensler’s administration totaled $6.05 billion—nearly four times the $1.52 billion imposed during Clayton’s tenure. The report found that 66% of enforcement actions under Gensler included allegations of fraud, compared to 54% under Clayton. Meanwhile, Clayton’s administration focused more heavily on unregistered securities violations, which accounted for 71% of its cases compared to 63% under Gensler. Future of Crypto Enforcement The SEC’s overall enforcement efforts devoted to cryptocurrency have averaged approximately 6% annually since 2018. With the formation of a new crypto task force announced for 2025, changes to the agency’s enforcement priorities could be on the horizon. “The SEC has continued to focus on its implementation of the Howey test,” said Abe Chernin, vice president at Cornerstone Research. “In 2024, the agency also concentrated on market manipulation and broker-dealer registration failures.” As the Gensler era concludes, observers are closely watching how the agency’s approach to cryptocurrency enforcement will evolve under new leadership.
CFTC Could Take Over Crypto Regulation from SEC
A potential power shift is brewing in the US regulatory landscape for cryptocurrencies. Reports suggest that the Commodity Futures Trading Commission (CFTC) could be granted oversight of the crypto industry, wresting control from the Securities and Exchange Commission (SEC). The move could have significant implications for the future of digital assets in the United States. Currently, the SEC oversees securities, while the CFTC regulates commodities and derivatives. However, the lines have blurred when it comes to cryptocurrencies. The SEC has asserted its authority over many digital assets, arguing that they fall under its purview as securities. This has led to numerous enforcement actions against crypto companies and tokens, creating uncertainty and frustration within the industry. A More Crypto-Friendly Approach? In contrast, the CFTC has generally been perceived as having a more crypto-friendly stance. It already oversees Bitcoin and Ether futures and options, and its chairman, Rostin Behnam, has called for a clear regulatory framework for crypto assets. “A lot is happening in terms of disruptive change and technology,” Behnam stated at a recent financial conference. “Tokenization and blockchain will impact financial markets, but digital assets are clearly at the top of the list for spot market regulation. Congress should be more involved in these areas than it is now.” Advocates for CFTC oversight argue that it could bring greater regulatory clarity and foster innovation in the crypto space. Furthermore, the CFTC’s experience with regulating derivatives markets could be valuable in addressing the crypto industry. A Potential Shift in Regulatory Power The potential shift in regulatory authority from the SEC to the CFTC reflects a broader debate about how to best oversee the crypto market. The SEC, with its larger budget and staff, has taken a more aggressive approach to enforcement. This has led to criticism that it is stifling innovation. Meanwhile, the CFTC, with its focus on commodities and derivatives, may be better suited to regulate the unique aspects of the crypto market. However, some argue that the CFTC may lack the resources and expertise to effectively oversee the vast crypto ecosystem. The decision of which agency will ultimately regulate the crypto industry remains uncertain. However, the potential for the CFTC to take the reins signals a potential shift in the US crypto regulations, one that could have significant implications for the future of digital assets in the country.
Crypto Groups Challenge SEC Stance on Airdrops
While the SEC maintains that the court should throw out Beba’s case, the Blockchain Association and Crypto Council have now urged the court to deny the regulator’s request.
SEC Seeks Extension in Ripple Case, Pushing Deadline to January 2025
The ongoing delays and legal back-and-forth have sparked widespread speculation within the crypto community.
Ripple Challenges SEC with Cross-Appeal in Ongoing Legal Battle
Ripple has been at loggerheads with the SEC for over a year.
Gurbir Grewal Steps Down As SEC Enforcement Director
The current Director of Enforcement at the U.S. Securities and Exchange Commission (SEC), Gurbir Grewal, is set to leave the agency. According to a Wednesday press release, Grewal will exit the commission on October 11, after serving in the role for the last three years. When he does step down, current deputy director of enforcement, Sanjay Wadhwa, will take charge as acting director of the SEC’s enforcement department. Sam Waldon, who is currently the chief counsel for the department, will then take up the role of acting deputy director. SEC Praises Gurbir Grewal for His Crypto Efforts The commission has lauded Grewal’s efforts so far, particularly, as it relates to crypto. According to the agency, the Grewal-led department recommended over 100 enforcement actions as a result of the increasing rate of noncompliance in the fast-paced crypto space. All of the recommendations were authorized by the SEC, including those against some of the biggest names in the industry. Meanwhile, SEC Chairman Gary Gensler has personally heaped praises on Grewal, thanking him for his time as the director of enforcement. Gensler recalls how he led the department of enforcement without fear or prejudice and was mainly concerned about protecting investors and ensuring that market participants acted in accordance with the extant securities laws. The SEC Chair issued a part statement, which reads: “Every day, he has thought about how to best protect investors and help ensure market participants comply with our time-tested securities laws. He has led a Division that has acted without fear or favour, following the facts and the law wherever they may lead.” The Tenure in View Grewal may have spent three years in his position as enforcement director. However, he recorded quite a number of achievements in that time. Per the press release, under Grewal, the SEC authorized over 2,400 enforcement matters that led to over $20 billion in disgorgement and civil penalties . The agency also released over $1 billion worth of rewards to whistleblowers. Recently, the SEC announced some more enforcement actions and settlements in the crypto space. Firms such as eToro, Mango Markets, and Galois Capital face enforcement action ahead of the end of the fiscal year.
SEC Charges Brothers in $60M Crypto Ponzi Scheme
The Adam brothers allegedly diverted investor funds into personal projects, mostly using them to fund their luxury lifestyle.
Thailand Unveils New Crypto Regulatory Sandbox to Boost Innovation
Applicants seeking entry into the sandbox will undergo a thorough evaluation process.
