- SEC Final Rule Regarding Disclosure Requirements Raved by the U.S. Court of Appeals for the Fifth Circuit
- Ripple expects to launch XRP ETF and a new stablecoin amid an ongoing legal battle with the SEC
In a recent turn of events, the court has ruled in favor of private fund managers and decided that the U.S. Securities and Exchange Commission’s (SEC) stricter regulations on private fund advisors should not be enforced.
In a recent one submitthe SEC has adopted a rule to improve the regulation of private fund advisors to protect investors and prevent fraud. This “Final Rule,” published on August 23, 2023, would be codified in the Code of Federal Regulations.
However, it was challenged by several private fund manager associations and ultimately canceled by the U.S. Court of Appeals for the Fifth Circuit.
Impact on the crypto market
The “Final Rule” could have had a major impact on the SEC’s ability to impose disclosure requirements on crypto companies as well.
SEC Chairman Gary Gensler, in a recent interview with CNBC, commented on the importance of the disclosure, saying:
“What President Roosevelt did is he created this committee to make sure that you, the investors, get the disclosure. And in the crypto markets they don’t give you that disclosure.”
He further said:
“But the disclosure does not necessarily protect a bad actor if he manipulates a market.”
Commenting on this, he expressed his dissatisfaction with the SEC’s attempt to expand its reach in the crypto market: Stuart AlderotyRipple’s CLO, went to X and noted:
“I wonder again how much taxpayer money has been wasted by Gensler’s SEC’s failed attempts to expand its jurisdiction beyond what the law allows?”
Here it is worth remembering that this update comes at a time when Ripple is already expecting a court decision in their case against the SEC.
XRP ETF next in line?
Despite the ongoing legal battle between Ripple and the SEC, rumors are circulating about the possible launch of XRP ETFs.
As the SEC nears the launch of Bitcoin Spot Exchange-Traded Funds (ETFs) and Ethereum ETFs, many believe the SEC could now take a more favorable stance toward cryptocurrencies.
Echoing similar sentiments, Ripple CTO Brad Garlinghouse recently noted:
“An XRP ETF is simply inevitable.”
That’s not all, with the president of Ripple Monica Long claiming that the company’s long-awaited stablecoin will likely debut this year as well.