Ripple’s major success in its court battle with the SEC: Law Decoded, July 10-17

18 July 2023

Cointelegraph By David Attlee

Ripple Labs scored a partial victory in its lengthy legal battle with the United States Securities and Exchange Commission, which dates back to 2020.

Newsletter

Join us on social networks

Given the current push for crypto regulation, the industry breathed a sigh of relief on July 13 as Ripple Labs scored a partial victory in its legal battle with the United States Securities and Exchange Commission (SEC) dating back to 2020.

Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled that Ripple’s XRP (XRP) token is not a security, but only regarding programmatic sales on digital asset exchanges. However, the SEC also notched up a victory of its own, with the judge ruling that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey test.

Immediately after the news, Ripple became the fourth-largest cryptocurrency by market capitalization. Mere hours after the ruling, XRP’s market cap surged a whopping $21.2 billion to reach a new yearly high of $46.1 billion, pushing it up from seventh position to beat out Circle’s USD Coin (USDC) and Binance’s BNB (BNB) token in the process.

Industry heavyweights believe the decision will aid crypto exchanges Coinbase and Binance in their respective SEC lawsuits. Tyler Winklevoss, the CEO of cryptocurrency exchange Gemini, said the ruling “decimates” the SEC’s case against Coinbase. His twin brother, Cameron Winklevoss, referred to the ruling as a “watershed moment” that will make it difficult for the SEC to claim authority over cryptocurrencies. United States Senator Cynthia Lummis stated that the verdict reinforces the immediate requirement for Congress to provide a thorough crypto framework that prioritizes the safeguarding of consumers.

South Korea to ask firms to disclose crypto holdings from 2024

South Korea’s Financial Services Commission (FSC) announced a new bill requiring all firms that issue or hold cryptocurrencies like Bitcoin (BTC) to disclose their holdings. The new measures aim to enhance transparency in the accounting and disclosure of crypto assets in line with supervision guidelines that require accounting for each transaction involving crypto. The initiative also targets revising accounting standards that obligate disclosure of virtual asset transactions.

Continue reading

First Bitcoin futures contract debuts in Argentina

Argentina welcomed its first Bitcoin futures contract on July 13, three months after the country’s securities watchdog approved the underlying index as part of a strategic innovation agenda. The Bitcoin futures contract will be based on the price of BTC quoted by several market participants providing BTC/ARS trading pairs. All trades will be settled with Argentine pesos, and traders are required to make deposits through bank transfers. According to local media reports, the product will initially be available only to institutional investors. There’s no clear timeline for when retail investors can trade Bitcoin futures contracts in the country.

Continue reading

Former Celsius CEO Alex Mashinsky arrested and charged

The former CEO of now-bankrupt crypto lender Celsius, Alex Mashinsky, was arrested after a probe into the company’s collapse. On the same day, the SEC filed a lawsuit against Mashinsky, charging him for raising “billions of dollars” through unregistered and fraudulent offers, as well as selling “crypto asset securities.” The criminal charges came parallel to those from the Commodity Futures Trading Commission, which announced a complaint against Celsius and Mashinsky on July 13. According to the commission, Celsius allegedly acted as an unregistered commodity pool operator, while Mashinsky was an unregistered associated person of the said operator, which are violations of the Commodity Exchange Act.

Continue reading

  

You might also like

Bitcoin ETFs log $912M inflows in ‘dramatic’ investor sentiment boost  
Bitcoin ETFs log $912M inflows in ‘dramatic’ investor sentiment boost  

Investments in Bitcoin exchange-traded funds (ETFs) have rebounded to levels last seen in January, signaling a recovery in investor sentiment from concerns about global trade tariff escalations.US spot Bitcoin (BTC) ETFs had over $912 million worth of cumulative net inflows on April 22, marking their highest daily investment in more than three months since Jan. 21, Farside Investors data shows.Bitcoin ETF Flow, millions. Source: Farside Investors“Bitcoin ETPs just saw the largest daily inflows since 21st January in a dramatic improvement in sentiment,” according to James Butterfill, head of research at CoinShares.Related: Bitcoin still on track for $1.8M in 2035, says analystInvestor sentiment appeared to improve after US President Donald Trump said that import tariffs on Chinese goods will “come down substantially,” adopting a softer tone in negotiations.The de-escalation and growing ETF inflows pushed Bitcoin price above $93,000 for the first time in seven weeks, Cointelegraph reported on April 23.The growing institutional investment and presence of ETFs may also accelerate the historic four-year cycle and bolster BTC to new highs before the end of 2025, analysts told Cointelegraph.US dollar weakness may reinforce Bitcoin’s safe-haven appealThe US dollar’s weakness may contribute to the growing investor demand for Bitcoin. DXY, year-to-date chart. Source: Cointelegraph/TradingView The US Dollar Index (DXY), which measures the strength of the greenback against a basket of leading fiat currencies, fell nearly 9% since the beginning of 2025, to an over three-year low of 98.8 last seen in April 2022, TradingView data shows.“Macro factors like a weakening dollar and rising gold correlation,” may reinforce Bitcoin’s appeal as a hedge against economic volatility, Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.Related: Crypto, stocks enter ‘new phase of trade war’ as US-China tensions riseBitcoin no longer trading in the “shadow of tech”Crypto and traditional stock markets are “walking a tightrope between political drama and economic reality,” with Bitcoin staging a significant rebound thanks to “strong ETF inflows, institutional acquisitions, and a weakening US dollar,” according to Nexo dispatch analyst Iliya Kalchev:“Bitcoin’s strength amid dollar weakness, record gold prices, and renewed institutional buying reflects a market recalibrating what safety looks like.”“The conversation has clearly shifted. Bitcoin is no longer trading in the shadows of tech — it’s becoming a lens through which macro uncertainty is priced,” he added.Nansen CEO Alex Svanevik also praised Bitcoin’s resilience, noting that the maturing asset is becoming “less Nasdaq — more gold” over the past two weeks, increasingly acting as a safe haven asset against economic turmoil, though concerns over economic recession may limit its price trajectory.On April 21, BitMEX co-founder Arthur Hayes predicted that this might be the “last chance” to buy Bitcoin below $100,000, as the incoming US Treasury buybacks may signal the next significant catalyst for Bitcoin price.Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8

Binance tightens South African compliance rules for crypto transfers  
Binance tightens South African compliance rules for crypto transfers  

Binance is set to implement new compliance measures for South African users, requiring sender and receiver information for all crypto deposits and withdrawals.In an announcement on April 23, the largest exchange in terms of daily trading volume of cryptocurrencies said the move comes in response to local regulatory demands.Starting April 30, Binance users in South Africa will be prompted to provide additional information when transferring crypto.For deposits, users must disclose the sender’s full name, country of residence, and, if applicable, the name of the originating crypto exchange. Similarly, withdrawals will require beneficiary details before processing.Binance to require information for all crypto transfers in South Africa. Source: BinanceThe update will only impact crypto deposits and withdrawals, leaving trading and other platform features unaffected.Related: US judge transfers Binance lawsuit to Florida, citing first-to-file ruleMissing transfer details may reverse transactionsBinance warned that failure to provide the required information may result in delayed transactions or, in some cases, a return of funds to the sender.In preparation for the rollout, users will need to re-login to their accounts starting April 24.The change comes as South Africa moves to boost oversight of the rapidly moving crypto sector.On April 2, Bloomberg reported that South Africa’s Revenue Service (SARS) is urging individuals, crypto exchanges and intermediaries involved in crypto transactions to register with the authority, warning that failure to do so is now illegal.In March, the Financial Sector Conduct Authority (FSCA) of South Africa issued a public warning against two unlicensed crypto firms, Afriinvest and Mutualwealth, accusing them of soliciting investments while promising unrealistic returns of up to 10,000 rand ($542) per day.Related: Binance, KuCoin, MEXC report service issues due to AWS network interruptionSouth Africa pushes to become key crypto hubEmerging economies across Africa, particularly South Africa, are positioning themselves as potential digital asset hubs amid growing regulatory clarity, Ben Caselin, chief marketing officer (CMO) of Johannesburg-based crypto exchange VALR, told Cointelegraph in September 2024.Caselin said that South Africa’s strong legal framework and ease of business make it a key entry point for crypto expansion across the continent.The South African crypto market is projected to generate $278 million in revenue in 2025, with expectations to grow at a compound annual growth rate (CAGR) of 7.86% and reach $332.9 million by 2028, according to Statista.Revenue in South Africa’s crypto market is expected to grow by 7.86% by 2028. Source: StatistaRegulatory momentum is increasing, with the FSCA approving 59 crypto platform licenses in March 2024, while over 260 applications remain under review.Cointelegraph contacted Binance for comments but did not receive a response by publication.Magazine: Former Love Island star’s tips on how to go viral in crypto: Van00sa, X Hall of Flame

SEC says it won’t re-file fraud case against Hex’s Richard Heart  
SEC says it won’t re-file fraud case against Hex’s Richard Heart  

The US Securities and Exchange Commission has said it doesn’t intend to refile its securities fraud complaint against Hex founder Richard Schueler, who goes by Richard Heart.“Plaintiff Securities and Exchange Commission provides this notice that it does not intend to file an amended complaint in this matter,” the regulator’s lawyer, Matthew Gulde, stated in an April 21 letter to New York District Court Judge Carol Bagley Amon. The court had previously dismissed the SEC’s original complaint on Feb. 28 as Judge Amon said the regulator failed to establish that it had jurisdiction over Heart’s activities, which she said were not specifically targeted at US investors.She granted leave for the SEC to file an amended complaint by March 20, later extending the deadline to April 21.Heart posted to X on April 22 that “Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have achieved regulatory clarity that nearly no other coins have.”Letter from the SEC to Judge Amon. Source: PACERHeart added that the SEC walked away from some of its other cryptocurrency cases voluntarily, but claimed his was the only case where “the SEC lost and crypto won across the board, with a dismissal in court of every single claim the SEC brought.”Heart said it was a victory for open-source software, cryptocurrency and free speech because the SEC “actually sued software code itself in this case.” SEC hunted Heart in FinlandThe SEC sued Heart in July 2023 for alleged unregistered securities offerings of three tokens, HEX, PulseChain (PLS), and PulseX (PSLX), claiming he made more than $1 billion by touting the tokens as a “pathway to grandiose wealth for investors.”In April 2024, Heart tried to have the suit tossed, claiming the regulator “has no sway over him,” because he didn’t reside in the United States. Related: Finnish police seize watches worth $2.6M from Hex founder Richard Heart: ReportThe SEC opposed this in August, claiming he touted the tokens at a Las Vegas event. In December 2024, Interpol issued a Red Notice for Heart, seeking his arrest in Finland, where he was also suspected of tax evasion. The PulseChain native token (HEX) hit an all-time high of $0.031 in December 2024 but has since tanked 76% as most altcoins have failed to follow Bitcoin’s momentum this year. The SEC has dropped or suspended several cases against crypto firms so far this year under the Trump administration.Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest

Open chat
1
BlockFo Chat
Hello 👋, How can we help you?
📱 When you've pressed the BlockFo button, we automatically transfer to WhatsApp 🔝🔐
🖥️ Or, if you use a PC or Mac, then we'll open a new window to load your desktop app.