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The US Securities and Exchange Commission (SEC) has recently approved in-kind creations and redemptions, marking a significant shift in the regulatory approach to cryptocurrency exchange-traded products (ETPs). SEC Chair Paul Atkins announced this news on Twitter, emphasizing that this action aims to create a more efficient and dynamic system for digital assets in the United States.
While the announcement was intended to highlight the growth of the crypto markets, it quickly drew attention to lingering legal concerns. Owners of XRP flooded the post with calls for a settlement in the SEC vs. Ripple case. Many users expressed confusion regarding the status of Ripple, especially in light of a previous court ruling that stated XRP is not considered a security when sold to the public.
Members of the Ripple community expressed displeasure with the SEC's actions regarding the Ripple case. Commenting on the proposed 50 million dollar fine and the conclusion of the deal, one user asked about the delays in agreeing. Some asserted that the SEC has exhibited inconsistency in its treatment of crypto projects that use other crypto assets, citing the authorization of new Bitcoin and Ethereum-based ETPs at the same time, while the Ripple case has not yet been authorized.
Ripple intends to drop its appeal, and court records indicate that it would be the case with the SEC as well. Nevertheless, the agency has yet to give an official statement. By August 15, a deadline imposed by a court, the SEC is expected to report on the status of the Ripple case.
Also Read: XRP Shows Bullish Trend Again: Will it Hit $9 or $24 Next?
SEC is also proceeding with the liberalization of crypto investments, and XRP has restrictions associated with it. Recent approvals have incorporated Bitcoin-Ether mixed ETPs and even more freedom for the purchase and sale of Bitcoin options. According to XRP holders, the situation with Ripple shows that the gap between the two is becoming ever greater, with no end in sight for the legal proceedings.
The community's response to the Ripple lawsuit highlights the tension between regulators and crypto stakeholders. However, the process of reviewing the SEC's actions is likely to remain in the spotlight until the Ripple case is over.
