By
Chimamanda U. Martha
April 30th, 2024
While she no longer works with the Commission, Stewart’s insights reflect very deep connections to the SEC’s stance, its strategies, and what it hopes to achieve with the crypto industry.
It appears that the last is not heard of the ongoing legal tussle between Ripple Labs and the US Securities and Exchange Commission (SEC). The XRP lawsuit, as it is popularly called, borders on the status of Ripple’s native token XRP as a security.
While Ripple has recorded some significant wins in the case so far, many believe that the case may still be headed to the US Supreme Court, particularly in the light of a recent ruling in the Coinbase case, which favored the SEC.
Ladan Stewart’s Take on the XRP Lawsuit
The former chief of the SEC’s crypto litigation unit, Ladan Stewart, recently spoke on a panel at Columbia Business School, sharing some knowledge about how the agency operates. While she no longer works with the Сommission, Stewart’s insights reflect very deep connections to the SEC’s stance, its strategies, and what it hopes to achieve with the crypto industry.
During the panel, Stewart noted that Judge Failla’s decision in the Coinbase case may have emboldened the SEC even more. That is with respect to how the agency has always approached matters such as this. As obtained from a Bitcoinist report, Stewart said partly:
“The agency is not going to back off from bringing regulatory cases in the crypto space.”
However, she acknowledged the need for clarity in some of these cases. Hence, she believes that there is a likelihood that one of the lawsuits brought against Ripple and the likes will eventually find its way to the Supreme Court.
For Stewart, the reason is to provide clarity. At least, something comprehensive enough to give a definitive answer to fundamental questions about what qualifies as securities within the crypto space. Hopefully, the Supreme Court would be able to shed more light on that, she noted.
Friendly Foe?
Stewart’s closing remarks at the event were the typical “we’re all friends” line. However, other panelists – Rebecca Rettig from Polygon and Lewis Cohen from DLx Law, would beg to differ with that statement. The duo hammered on the impracticability of the SEC’s laws, adding that it is why it approaches regulation by enforcement.
As many crypto advocates have pointed out, the existent securities laws do not align with the realities of digital asset markets. There is a persistent grey area that creates confusion and plunges the industry into a state of dilemma.
Nonetheless, the ongoing debates are poised to shape the future of crypto regulation in the United States.