SEC’s Appeal Against Ripple Labs Rejected by Court
A U.S. District Court Judge has denied the U.S. Securities and Exchange Commission’s (SEC) motion to appeal its loss against Ripple Labs, the company behind the XRP cryptocurrency. The judge stated that the SEC failed to demonstrate controlling questions of law or substantial grounds for differences of opinion. This follows the court’s previous decision in July, where it declared that retail sales of XRP did not meet the legal definition of a security. However, a trial has been scheduled for April 2024 to address remaining issues in the case.
Hong Kong Forms Crypto Task Force
The Hong Kong Police Force and the Securities and Futures Commission (SFC) have established a working group focused on tackling illicit activities related to crypto exchanges. The group aims to enhance monitoring, investigate illegal activities, share information on suspicious activities, assess risks, and collaborate on investigations. This move comes after 11 individuals were detained for questioning in connection with the JPEX scandal, where a firm allegedly promoted its services without a license in Hong Kong.
Canada Provides Guidelines for Stablecoins
The Canadian Securities Administrators (CSA) has issued interim guidance for exchanges and cryptocurrency issuers regarding stablecoins. The CSA emphasized that stablecoins could be considered securities or derivatives, which are prohibited from trading on Canadian crypto exchanges. However, if issuers maintain appropriate reserves with qualified custodians and exchanges disclose relevant information publicly, trading of these assets may be allowed by the CSA.
U.K. Adds Crypto Companies to Warning List
The Financial Conduct Authority (FCA) in the United Kingdom has added 143 crypto exchanges to its warning list of non-authorized firms that customers should avoid. This includes well-known exchanges like HTX and KuCoin. The warning list provides limited information, but failure to comply with the FCA’s warnings could result in criminal charges.
Hot Take: Ripple Gains Ground Against SEC Appeal
The recent rejection of the SEC’s motion to appeal its loss against Ripple Labs is a significant development in the ongoing legal battle. It indicates that the court found the SEC’s arguments insufficient to warrant an appeal. While this is a positive outcome for Ripple, the case is far from over, as a trial is scheduled for April 2024 to address remaining issues. The outcome of this trial will have significant implications for the classification and regulation of cryptocurrencies. Both Ripple and the crypto community at large will be closely watching the proceedings.
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