The U.S. Securities and Exchange Commission (SEC) is shifting its focus towards creating a clear regulatory framework for cryptocurrencies following the conclusion of a nearly five-year legal battle with Ripple. SEC Chair Paul Atkins stated that the resolution allows the agency to move from litigation to policy development, emphasizing the need for regulations that promote innovation while safeguarding investors. This development follows the SEC's lawsuit against Ripple, alleging that the company raised $1.3 billion through unregistered sales of XRP securities. The legal dispute ended when both parties agreed to drop their appeals and bear their own costs. With the Ripple case behind them, SEC officials are optimistic about advancing clearer regulations, notably as lawmakers work on the Digital Asset Market Clarity Act, which aims to define the structure of digital asset markets. This legislative effort is under scrutiny as political divisions in Congress complicate bipartisan support for various proposed regulations in the crypto space.

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