The big legal fight between the US Securities and Exchange Commission (SEC) and Ripple Labs, is a really important event in cryptocurrency history. Lately, big changes have been happening in the industry, especially in the US. A notable win in the SEC lawsuit has caused a stir. XRP’s classification as not a security is a key point here, affecting other cryptocurrencies too.
Neil Sheppard, the Head of Derivatives at Gemini exchange, appeared on the Thinking Crypto podcast and said that all of this is a big deal, especially in the United States. According to him, the US is like the leader in this game, but right now, it’s not leading very well. There’s a lot of arguing and confusion between different groups. This confusion is bad for businesses and people who want to use cryptocurrencies safely.
He added, “I think that this really shows how confused the US is in general around how to manage this process. And I think when you think about regulation, what is regulation really there for? And that is one of my personal sort of complaints about regulation as a general statement.”
He added that in the end, we need clear and fair rules for cryptocurrencies. It’s like everyone agreeing on the same game rules so that everyone can play happily. If the rules are unclear or unfair, people might leave the game altogether and find a different place to play.
Talking about the XRP lawsuit, he said, imagine you’re playing a game, and someone says you’re cheating, but the judge says you’re not. That’s a bit like what happened with XRP. This ruling is important because it stops regulators from making unfair rules.
In 2020, the SEC sued Ripple Labs, saying they sold XRP tokens without proper permission, which is like selling stocks or bonds. The argument was whether XRP should be treated as something the SEC regulates.
Source: https://coinpedia.org/news/ripple-vs-sec-the-us-is-confused-how-to-manage-the-process-says-industry-expert/