SEC is a threat only for XRP or for entire crypto world? Is it even dangerous? By DailyCoin

SEC is a threat only for XRP or for entire crypto world? Is it even dangerous?

CryptocurrencyJun 06, 2021 11:00PM ET

This article has already been saved in your Saved Items

SEC is a threat only for XRP or for entire crypto world? Is it even dangerous?

Ripple has been on the radar of the Securities and Exchange Commission for some time with allegations of conducting a $1.3 billion unregistered security offering being levied against them.
Pressure continues to mount as the Securities and Exchange Commission seeks to extend its investigation by two months in order to confront new issues.
RippleLabs has announced that Ripple intends to go public immediately following the dispute with the SEC.
The company faces problems with no clear end to the legal battle in sight. Many are now suggesting that the actions of the SEC are a market wide concern.

The Securities and Exchange Commission is the governing body that regulates and controls the stock and capital market. Its reach extends from registration and listing, to the investigation of fraudulent activities in securities. The mass adoption of cryptocurrencies and blockchain solutions has caught the attention of the Commission.

Like the stock market, the cryptoverse isn’t immune to scams and fraudulent ICOs. Initial Coin Offerings (ICOs), boomed in 2017 and 2018, with many crypto and blockchain solutions utilizing it to raise funds for their projects. Unlike IPOs in the stock market, there are few regulations surrounding ICOs, and many have gone south as a result. Ripple, among other companies, are being investigated on the technicalities of their ICO.

The SEC Clamps Down on Ripple

XRP was launched by RippleLabs to be a faster, more secure, and scalable solution to existing payment platforms and digital assets, gaining popularity due to its technology and processing speed. At the time of writing XRP is trading at $1.03.

In December 2020, the SEC announced that it had filed charges against Ripple and two executives: co-founder, former CEO and executive chairman of the board, Christian Larsen, and current CEO, Bradley Garlinghouse, who allegedly raised $1.3 billion through the sale of unregistered securities.

The sale of XRP via an unregistered company violated the registration process of the Securities Act.

Ripple has recorded several successes in its legal battle so far, but the case appears to be far from finished, with the SEC seeking a 60-day discovery extension.

The SEC has already been conducting witness interviews and are now aiming to interview a further 6 witnesses. The Commission is of the view that a two-month extension is a fair allocation to properly address the newly raised issues.

On the Flipside

Gary Gensler, the new chief of the SEC, is a crypto enthusiast and experts expect that the case will soon be settled.
The Securities and Exchange Commission isn’t doing much to prevent, or stop, crypto scams and remains too focused on Ripple.

The Impact on Ripple and Other Assets

With no clear settlement in sight, the investigation into Ripple has affected the price of the asset. While, at the time of writing, XRP is trading at $1.03, the price could have flown higher, to as much as $1.8 or more, assuming a resolution was made. The company has announced that it plans to go public once its dispute with the financial regulator concludes. Ripple’s CEO, Bradley Garlinghouse, revealed that all plans to go public are on hold until the tussle with the SEC has been resolved.

The news of a future Ripple IPO pushed XRP up over 14% in 24 hours. Going public is expected to be huge for Ripple in many ways, with funds likely being pumped into the asset. The SEC’s case prevents Ripple from enacting its plan, and is hindering the company’s growth.

Coins and assets in the cryptoverse will be greatly affected by the SEC if it continues to dig into ICOs. ICOs are a method of raising money for crypto solutions and the SEC acts as an obstruction to such activity.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K By Cointelegraph - Jun 23, 2021

Bitcoin price is still in a rut, trading near $33,000 and trapped in a downtrend that just seems to get worse with the passing of each day. As the price slumps, analysts have...

Crypto market cap recovers $76B, altcoins rally after Bitcoin hits $34K By Cointelegraph - Jun 23, 2021

Cryptocurrency traders received a reprieve from bearish market conditions on June 23 as Bitcoin’s (BTC) brief recovery to $34,880 triggered a rally in altcoins and hope that...

Senator Cynthia Lummis excited to buy the Bitcoin dip By Cointelegraph - Jun 23, 2021

United States Senator Cynthia Lummis, a Republican from Wyoming, took advantage of a deeply discounted Bitcoin (BTC) price this week by adding to her holdings. In the wake of yet...

Add a Comment

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically.
Use standard writing style. Include punctuation and upper and lower cases.
NOTE: Spam and/or promotional messages and links within a comment will be removed
Avoid profanity, slander or personal attacks directed at an author or another user.
Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
						<a href="javascript:void(0);" id="commentFlag_{commentID}">
							<span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
						</a>
					</div>
				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

US 30 Futures	33,783.0	-52.0	-0.15%
US 500 Futures	4,233.38	-2.87	-0.07%
Dow Jones	33,874.24	-71.34	-0.21%
S&P 500	4,241.84	-4.60	-0.11%
Nasdaq	14,271.7	+18.5	+0.13%
S&P 500 VIX	16.32	-0.34	-2.04%
Dollar Index	91.803	+0.052	+0.06%

Crude Oil WTI	73.28	+0.43	+0.59%
Brent Oil	75.41	+0.60	+0.80%
Natural Gas	3.319	+0.061	+1.87%
Gold	1,778.60	+1.20	+0.07%
Silver	25.938	+0.081	+0.31%
Copper	4.3175	+0.0875	+2.07%
US Soybeans	1,381.75	-13.25	-0.95%

SPDR S&P 500	422.60	-0.51	-0.12%
iShares Russell 2000	228.66	+0.75	+0.33%
Invesco QQQ Trust	347.74	+0.17	+0.05%
Direxion Daily Junior Gold Miners Bull 2X Shares	84.57	-1.53	-1.78%
iShares Silver	23.93	+0.08	+0.34%
ProShares Ultra VIX Short-Term Futures	29.16	-0.84	-2.80%
ProShares UltraPro QQQ	115.75	+0.20	+0.17%

Apple	133.70	-0.28	-0.21%
Alphabet A	2,442.5	-4.1	-0.17%
Tesla	656.57	+32.86	+5.27%
Amazon.com	3,503.8	-1.6	-0.05%
Netflix	512.74	+3.92	+0.77%
Facebook	340.59	+1.56	+0.46%
Bank of America	40.20	+0.23	+0.58%

SEC is a threat only for XRP or for entire crypto world? Is it even dangerous?

Related Articles