🚨 SEC May Redefine Cryptocurrency Attributes, Expert Predicts 🚨
According to BlockBeats, U.S. regulatory expert Amy Lynch predicts that the Securities and Exchange Commission (SEC) may redefine the attributes of cryptocurrencies. This could lead to most tokens being classified as commodities, potentially placing them outside the SEC’s jurisdiction.
The ongoing SEC lawsuit against Ripple Labs over the issuance of $XRP tokens remains a pivotal case. The SEC had accused Ripple of issuing unregistered securities, and this lawsuit has been viewed as a legal precedent for classifying cryptocurrencies as SEC-regulated securities. While the case has progressed slowly, with the SEC appealing a previous court ruling last October, regulatory perspectives are shifting, raising questions about whether the SEC will continue its appeal.
More broadly, enforcement of securities laws could face significant limitations, partly due to increased oversight of the SEC’s internal operations. Lynch speculates that efforts to streamline the agency could impact its regulatory approach.
“I think they will take their time to formulate their own plans,” Lynch said, suggesting that pending cases based on positions held by former SEC officials might eventually be dismissed.
Lynch also warned that uncertainty in the legislative process could trigger short-term selling pressure. However, she believes that, in the long run, regulatory clarity would strengthen the fundamental value of cryptocurrencies. She cited past instances where crypto prices dropped due to legal shifts.
