SEC Spares XRP from Kraken “Crypto Securities” Firing Line

SEC’s lawsuit against Kraken excludes XRP from alleged securities, raising eyebrows and inviting scrutiny over cryptocurrency regulations.

Gary Gensler standing in a dark swamp resting his elbow on an XRP coin.
Created by Gabor Kovacs from DailyCoin
  • SEC’s lawsuit against Kraken has unveiled intriguing omissions in the alleged crypto securities list.
  • XRP has notably been absent from the SEC’s lineup of accused crypto assets listed by Kraken.
  • The SEC has demanded that Ripple pay out millions in damages to its institutional customers.

The recent lawsuit against Kraken, a cryptocurrency trading platform, represents the U.S. Securities and Exchange Commission’s (SEC) active involvement in regulating the cryptocurrency industry. Notably, the lawsuit did not include XRP among the alleged securities, which has caught the attention of legal observers.

Kraken Faced with Crypto Asset Security Accusations

The SEC’s lawsuit lists various cryptocurrencies accused of being offered as “crypto asset securities” by Kraken, such as Cardano (ADA), Axie Infinity (AXS), Algorand (ALGO), Cosmos Hub (ATOM), Chiliz (CHZ), COTI (COTI), Dash (DASH), Filecoin (FIL), Flow (FLOW), Internet Computer (ICP), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), OMG Network (OMG), The Sandbox (SAND), and Solana (SOL).

Interestingly, the SEC claims that these crypto assets were not only offered as securities by Kraken but were also part of the agency’s actions against other unregistered intermediaries, including crypto exchanges like Bittrex, Binance, and Coinbase.

Ripple’s Struggle to Lower $770 Million Charges

Federal Judge, Analisa Torres, previously ruled on July 13, 2023, that Ripple’s sales of XRP to retail customers did not classify as securities sales. This ruling partially favored the blockchain company, which is currently in talks to settle fines concerning its sales to institutional clients.

The SEC is pushing for Ripple to pay approximately $770 million in damages, referred to by legal experts as the “worth of flesh.” This sum encompasses XRP sales to institutional customers in the US and abroad, which Ripple is striving to reduce.

On the Flipside

  • The absence of XRP from the SEC’s lawsuit against Kraken might not necessarily indicate a clean slate for the token, as regulatory scrutiny could still be looming in the future.
  • The exclusion of XRP from this lawsuit doesn’t necessarily signify a broader regulatory trend or a conclusive decision about its status as a security.

Why This Matters

The exclusion of XRP from the list of security classifications in Kraken’s lawsuit appears to suggest a potential admission of defeat for the SEC, especially amid their ongoing legal battle with Ripple over XRP’s security status. This omission might create a legal opening or loophole worth exploring within the regulatory framework.

To learn more about Ripple’s AMM integration and its impact on XRP’s future, read here:
Ripple’s AMM Integration Sparks Concerns Over XRP’s Future

To delve deeper into Ripple embracing token independence and the 11% surge in XRP, read here:
Ripple Embraces Token Independence as XRP Skyrockets 11%

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.