Crypto’s Regulatory Status
The SEC has long claimed authority over digital assets as securities. This is why attorney Bill Morgan believes the SEC is primarily targeting the regulation of all cryptocurrencies.
SEC’s Focus on Crypto Status
Morgan highlights the SEC’s interlocutory appeal, where they argued that XRP is merely computer code with no intrinsic value. This suggests the SEC’s focus on establishing that cryptocurrencies are not commodities.
SEC’s Appeal Options
Despite the court’s ruling that XRP is not a security, the SEC could potentially appeal. However, Morgan believes the SEC’s primary goal is to determine the regulatory status of all crypto assets.
SEC’s Argument
The SEC argues that the sale of cryptocurrencies on primary or secondary markets constitutes an investment contract. This implies that the purchase of crypto is motivated by the expectation of profit from others’ efforts.
Impact on Cryptocurrencies
The SEC’s lawsuit against Ripple has significant implications for the crypto market. It could clarify the SEC’s classification and regulation of cryptocurrencies. The upcoming trial on April 23 is eagerly anticipated as a potential resolution to the lawsuit.
