Over the past 24 hours, Bitcoin had dropped less than 1% to $37,250. Since cryptos entered a terrible bear market in May 2022, the most significant digital asset has been just shy of $38,000, which it surpassed last week. November, as predicted, has given its share of rally to Bitcoin. Many say Bitcoin has got its Bitcoin gains before the actual event.
However, things are unsuitable for other crypto assets like Cardana, SOL, and Matic, which may face a challenging period with Kraken’s crackdown by the SEC. Is the SEC’s unregulated web a direct attack to suppress crypto sell?
Regarding current affairs, Legal expert Mike Selig recently highlighted a significant shift in the SEC’s handling of cryptocurrency regulations. The SEC’s recent lawsuit against Kraken, a major crypto exchange, seems to signify a more cautious approach by the agency. Selig suggests this strategic move could potentially lead to a Supreme Court decision as the SEC seeks to assess the security status of crypto secondary sales across various district courts.
Interestingly, while popular cryptocurrencies like Cardano and Solana were labeled as securities in the lawsuit, XRP, the digital asset central to Ripple’s legal battle with the SEC, was notably absent from Kraken’s list of alleged securities.
Kraken’s response to the lawsuit has been firm, emphasizing its commitment to clients globally and maintaining its existing services despite the legal action. CEO Dave Ripley strongly contested the SEC’s claims, highlighting the lack of clear regulatory guidelines for crypto exchanges and calling for Congressional action to address the regulatory uncertainty surrounding cryptocurrencies in the U.S.
In a CNBC interview, Ripple’s CEO, Brad Garlinghouse, recently criticized the SEC for what he perceives as a deviation from its investor protection mandate. At the Ripple Swell event in Dubai, Garlinghouse advocated for clear federal laws governing digital currencies rather than relying on litigation to establish regulatory precedents. This critique follows Ripple’s legal win in July, where a judge ruled that XRP was not a security. This decision has notably impacted the ongoing legal landscape for digital assets.
The Future of ADA, SOL, and Others Hangs in the balance
The SEC’s legal pursuit against Kraken aligns with a broader trend where major cryptocurrencies face classification as securities. Recent lawsuits targeting exchanges like Binance and Coinbase have alleged tokens like ADA, SOL, and MATIC as unregistered securities.
However, figures like Charles Hoskinson, Cardano’s founder, clarified that ADA hasn’t faced enforcement action despite increased regulatory attention. Entities like Input Output Global (IOG) and the Solana Foundation firmly reject the SEC’s assertions regarding ADA and SOL as securities. This trend underscores a growing clash between regulators and crypto projects regarding asset classification.
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