Senator Warren sets July 28 as the deadline for the US SEC to respond on crypto regulation. Will their decision affect Ripple’s XRP?
July 9, 2021, | AtoZ Markets – US democrat senator Elizabeth Warren has written a letter to the United States Securities and Exchange Commission (SEC), which is in a lawsuit with Ripple, stating that the SEC should decide on cryptocurrencies as soon as possible. Warren stated in his letter that he expects a response from the institution by 28 July.
Senator Warren, who chairs the Economic Policy Subcommittee of the Senate Banking Committee, wrote a letter to SEC Chairman Gary Gensler, criticizing the lack of legal regulations for cryptocurrencies, Reuters reported. In the letter, it was stated that the lack of prudent regulations that should be made in this area has left the investors in the hands of manipulators and fraudsters.
US crypto regulation on the horizon
US Senator Elizabeth Warren, who previously made critical comments on cryptocurrencies, described the market as “speculative in nature”. Warren criticizes that the crypto market will not end well. Warren most recently voiced his complaints at a subcommittee hearing about the energy consumption of Bitcoin and other cryptocurrencies using the Proof of Work transaction validation model.
Warren wanted arrangements to be completed as soon as possible. For this reason, in the letter he sent to the SEC chairman, he emphasized the importance of taking some steps until July 28.
On the one hand, this demand of the politician may cause the institution, which has a case with Ripple, to make hasty decisions. Although the IRS, another institution that works on regulations in the United States, does not make a wide range of decisions on cryptocurrencies, it demands taxation for crypto money payments over a certain amount.
Will Ripple be affected?
As AtoZMarkets reported, the lawsuit between the SEC and Ripple was postponed until October 15, 2021, upon the demands of both parties. Definitions of Ripple and cryptocurrencies are of great importance in the course of this lawsuit.
In a recent hearing, Ripple requested the court to oblige the US SEC to disclose its internal trading policies.
The judge of the case, Sarah Netburn, gave a positive decision, by granting Ripple’s request saying that it was closely related to the case. However, the SEC is against the release of such data. According to the regulator, they are not related to the trial and “will not lead to the discovery of any relevant evidence.”
Ripple, nevertheless, believes that the disclosure of internal policies will show how the SEC differentiates XRP from Bitcoin and other altcoins.
According to attorney Jeremy Hogan, the verdict in the case should not be expected earlier than December 2021-January 2022.
But the fact that the senator has given the SEC a deadline for cryptocurrency regulations could influence the course of this case. Decisions to be made in line with the regulations may also affect the course of this case.
The XRP price has been shaped by the Bitcoin price for a while. XRP is down 1.38% in the last 24 hours, falling to $0.61. XRP has been stuck in the $0.80-0.52 region for the past month.
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