The ongoing legal battle involving Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over whether XRP should be classified as a security continues to captivate public interest, with the possibility of escalating to the U.S. Supreme Court. Ladan Stewart, former head of the SEC’s crypto litigation unit, discussed this potential at a panel at Columbia Business School, emphasizing the intricacies of crypto regulation.
Stewart highlighted the impact of a recent favorable court decision for the SEC against Coinbase, suggesting it might encourage the SEC to maintain a stringent regulatory approach towards cryptocurrencies. She remarked on the ongoing challenges in defining digital assets under U.S. securities laws, indicating that a Supreme Court decision might ultimately be necessary to establish clear legal standards.
During the discussion, Stewart pointed out that both the SEC and the Commodity Futures Trading Commission (CFTC) are unlikely to retreat from active litigation in the cryptocurrency space, aiming to continue protecting consumers amid demands for clearer regulations. The dialogue also featured viewpoints from other experts like Rebecca Rettig, an analyst from Polygon, and Lewis Cohen of DLx Law, who expressed concerns about the SEC’s current regulatory tactics being vague and not entirely feasible under existing laws.
The potential for the XRP case to reach the Supreme Court was underscored as a critical step towards resolving ongoing disputes over the application of securities laws to digital assets. This case could set a precedent that would influence how other cryptocurrencies are treated under U.S. law, potentially leading to significant changes in enforcement or compliance practices within the industry.