Ripple’s Legal Battle Sparks Regulatory Overhaul in Crypto Industry

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The Ripple case has triggered a wave of change in the cryptocurrency industry and its regulatory landscape. Eleanor Terrett, a Journalist & Producer at Fox, recently highlighted the ongoing battle of jurisdiction between the SEC and the Commodity Futures Trading Commission (CFTC). While both agencies aim to regulate digital assets, their differing perspectives have created a regulatory vacuum.

She also spoke about the urgency behind the current legislative movement and the changing dynamics brought about by the SEC’s legal clash with Ripple. Terrett opened up about the rapid pace at which various bills are being moved through the legislative process. 

In a conversation with Thinking Crypto, the journalist suggested that the SEC’s recent loss to Ripple in court has fueled a sense of urgency among policymakers. The industry’s collective response, including companies challenging the SEC’s regulatory approach through legal action, has prompted a shift in the narrative. She said, “I think the Ripple case really helped kind of solidify that because we saw the language in the bill was, you know, pretty much a carbon copy of what Judge Torres said.”

Industry Backlash: Pushing for Change

Terrett highlighted the industry’s mounting pushback against the SEC’s regulatory stance. Key players like Grayscale, Coinbase, and Gemini are actively voicing their concerns over the current regulatory environment. These companies, along with others, argue that the SEC’s approach is unsustainable and detrimental to the growth and innovation within the cryptocurrency space.

She also raised questions about the SEC’s actions in light of recent events. She mentioned the SEC’s apparent inaction during 2022 regarding certain companies, despite its strict regulatory approach to others. 

In 2020, the SEC sued Ripple, claiming they sold unregistered securities in XRP. Judge Analisa Torres of the U.S. Southern District Court had planned a trial for other unresolved issues in the second quarter of 2024