XRP is not included in the securities in the SEC’s action against Kraken, which has caused some to wonder and may lead to more examination of cryptocurrency legislation.
U.S. Securities and Exchange Commission (SEC) participation in cryptocurrency sector regulation is seen in the recent case against Kraken, a cryptocurrency trading platform. A point that has attracted the attention of legal audiences is the absence of XRP from the list of claimed securities in the case.
In its lawsuit against Kraken, the SEC names a number of cryptocurrencies: 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 Kraken sold these crypto assets as securities, and that the agency also took action against other unregistered intermediates, such as Bittrex, Binance, and Coinbase, crypto exchanges.
Sales of XRP by Ripple to retail consumers were previously determined by Federal Judge Analisa Torres to not constitute sales of securities on July 13, 2023. The blockchain startup is now negotiating a settlement to pay penalties related to its sales to institutional customers, and this verdict was largely in its favor.
Legal professionals have dubbed the amount that the SEC is demanding from Ripple, about $770 million, the “worth of flesh.” This amount includes XRP sales to institutional clients in the US and overseas, a target market that Ripple is actively working to decrease.
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