Judge Analisa Torres has granted the United States Securities and Exchange Commission (SEC) permission to file a motion for leave to file an interlocutory appeal in its ongoing case against Ripple Labs. The SEC will submit a motion on August 18 to bring the case to the U.S. Court of Appeals for the Second Circuit. Ripple Labs will also have the opportunity to file an opposition to the motion. This development comes after Torres ruled on July 13 that Ripple’s XRP token is not a security when distributed in public sales but is considered a security in institutional sales.
The case against Ripple began in December 2020, when the SEC sued the company and its executives over allegations of offering an unregistered security. The outcome of the appeal will have significant implications for the cryptocurrency industry as a whole, as it could provide further clarity on the SEC’s jurisdiction over digital assets.
In other news, the cryptocurrency market experienced a significant slump as the prices of Bitcoin and Ether reached a two-month low on August 18. This downward trend resulted in billions of dollars worth of hedged positions being liquidated, causing several traders to incur substantial losses. The sudden volatility in the market was attributed to multiple factors, including the SpaceX Bitcoin write-down and macroeconomic influences.
Despite the overall decline in the cryptocurrency market, El Salvador’s bond returns have soared to 70% in 2023. Since adopting Bitcoin as a legal tender in 2021, El Salvador has attracted interest from institutional investors such as JP Morgan, Eaton Vance, and PGIM Fixed Income. The successful performance of El Salvador’s bonds has raised confidence in the country’s economic prospects and solidified the decision to adopt Bitcoin.
Europe celebrated the launch of its first-ever spot Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam stock exchange. Jacobi Asset Management’s Jacobi FT Wilshire Bitcoin ETF went live on August 15, marking a significant milestone for the European cryptocurrency market. This development comes as the United States continues to grapple with the approval of similar spot Bitcoin ETF applications from major asset managers like BlackRock and Fidelity.
Coinbase, one of the largest cryptocurrency exchanges, has received approval from the National Futures Association (NFA) to offer Bitcoin and Ether futures contracts to eligible customers in the United States. This approval allows Coinbase to enter the crypto futures market, which accounts for a significant portion of global crypto trading volume. The exchange has already begun accepting early access requests from customers interested in trading these futures contracts.
In summary, the SEC’s request to file a motion for an appeal in the Ripple case has been granted, signaling a significant development in the legal battle between the regulator and Ripple Labs. The cryptocurrency market experienced a slump, resulting in substantial liquidations for traders. El Salvador’s bond returns have seen a significant increase, further validating the country’s decision to adopt Bitcoin. Europe’s first spot Bitcoin ETF has been launched, while Coinbase has obtained approval to offer Bitcoin and Ether futures contracts in the United States.