Binance Settlement and Ripple’s Chief Legal Officer’s View on Crypto Regulation
Ripple’s Chief Legal Officer, Stuart Alderoty, has raised an important point about crypto regulation in the U.S. following Binance’s settlement with the Department of Justice (DOJ).
Crypto Tokens Are Not Securities
In a post on his X platform, Alderoty questioned the SEC’s stance on crypto tokens. He pointed out that the DOJ did not mention anything about Binance violating securities laws or that the crypto tokens on the exchange were securities in the charges it brought against the world’s leading crypto exchange.
Alderoty highlighted that the SEC’s term “crypto asset securities” was not mentioned in the DOJ’s case against Binance, indicating that it has no legal meaning. This supports Judge Analisa Torres’ ruling that XRP wasn’t a security, suggesting other crypto tokens aren’t securities either.
He commended the DOJ’s action, calling it a “necessary step” to ensure the crypto industry complies with crucial laws and safeguards, comparing the industry’s trajectory to the compliance measures that big banks went through years ago.
Binance Still Not Yet In the Clear
The DOJ’s resolution with Binance involved FinCEN, OFAC, and the CFTC, but the SEC’s case against the crypto exchange remains unresolved. Binance still has to answer the civil suit that the SEC filed against it, alleging that the exchange operated as an unregistered securities exchange.
The fine of over $4 billion that Binance is required to pay as part of the resolution with the DOJ is one of the largest compliance fines in history. The exchange may face additional fines based on the outcome of the SEC’s case against it.
Hot Take: The Future of Crypto Regulation in the U.S.
The resolution of Binance’s case with the DOJ shines a light on the evolving landscape of crypto regulation in the U.S. While the DOJ did not charge Binance for violating securities laws, the SEC’s case against the exchange remains pending. The outcome of this case could significantly impact the crypto industry’s compliance standards and regulatory requirements in the country.
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