US Lawmaker Highlights Ripple Ruling – A Game Changer, Slams SEC Approach Over Crypto Industry 

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Recent developments have brought the U.S. Securities and Exchange Commission (SEC) under intense scrutiny, particularly in its approach to regulating the cryptocurrency space. 

Amidst growing concerns about the SEC’s regulatory policies, Rep. French Hill (R-Ark) recently made headlines by highlighting Ripple’s legal victory against the SEC during a congressional hearing.

Ripple Ruling – A Game Changer

In a recent congressional hearing, Representative French Hill criticized the SEC’s regulatory actions, particularly in the cryptocurrency industry. 

During the hearing, Rep. Hill, who chairs the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, highlighted Ripple’s legal victory over the SEC as a game-changing ruling in the ongoing debate over regulatory reform.

Rep. Hill pointed to a federal court ruling in July 2023, which found that Ripple Labs did not violate federal securities laws by issuing its XRP tokens on a digital exchange. 

Eventually, earlier SEC accused Ripple of an unregistered securities offering for raising billions of dollars through the sale of XRP. Contrary to the SEC’s allegations, the court found that Ripple’s XRP sale was not an investment transaction and not subject to securities laws.

SEC Arbitrary Approach

In the wake of Ripple’s ruling, Rep. Hill highlighted two other examples of federal courts challenging the SEC’s actions. One case involved Grayscale Investments, where a judge ordered the SEC to reconsider its decision to convert Bitcoin Trust into an ETF.

Another ruling, against crypto firm DEBT Box, exposed the SEC’s factual errors and ordered the commission to pay legal fees. These issues highlight concerns about SEC overreach and its impact on crypto regulation.

These developments underscore the SEC’s growing concerns about excessive regulation and its impact on the cryptocurrency industry. Rep. Hill’s comment highlights the need for regulatory clarity in the crypto market.