Ripple celebrates SEC’s dropped appeal, but crypto rules still not set
Ripple is celebrating the United States Securities and Exchange Commission’s (SEC) decision not to pursue a court case against the firm, but it provides little legal certainty for the crypto industry.
The US financial regulator has apparently dropped an appeal against Ripple, the issuing firm of crypto asset XRP. The industry saw the case as a prime example of regulatory overreach by the SEC under former chair Gary Gensler.
Ripple CEO Brad Garlinghouse said the decision “provides a lot of certainty for RIpple” and that while the case is effectively over, there are still some loose ends the firm needs to tie up with the SEC. “We now are in the driver’s seat to determine how we want to proceed.”
Stuart Alderoty, Ripple’s chief legal officer, wrote on X, “Today, Ripple moves forward — stronger than ever. This landmark case set a precedent for the domestic crypto industry.”
Ripple and the crypto industry as a whole are counting this as a major victory, but the SEC’s decision provides no legal precedent, and the “guardrails” the industry has lobbied for are yet to be defined.
Consequences of Ripple case on lawmaking and precedent
The cryptocurrency lobby was quick to celebrate the SEC decision, announced by Garlinghouse at the Digital Asset Summit in New York on March 19. Markets took notice — XRP price spiked 9% in the first hour following the announcement.
Supporters and observers posted on X about the precedent the case would set for the crypto industry. But legal observers are less certain about the overall impact the SEC’s appeal decision will have on the broader crypto industry.
Lawyer Aaron Brogan told Cointelegraph that the Ripple case “creates no precedent that any other firm can rely on.” He added there is “no question that the regulatory environment is more favorable to crypto firms today,” but the SEC’s exact policy won’t become clear until Paul Atkins is nominated as chair of the commission.
Related: Crypto regulation must go through Congress for lasting change — Wiley Nickel
Brian Grace, general counsel at the Metaplex Decentralized Autonomous Organization, further noted that the 2023 decision to which the SEC was appealing does not set a legal precedent.
He wrote on March 19, “The Ripple decision is not binding legal precedent. It was a single district court judge’s ruling based on the facts of that case.”
The SEC appeal repeal also has limited influence on the ongoing legislative efforts to create a framework for the cryptocurrency industry in the US. Grace said that the onus is on Congress, not the SEC, to make lasting legal changes for the cryptocurrency industry.
“The U.S. crypto industry needs new legislation to provide clarity and protection. Without it, the Plaintiffs bar can continue to sue in district courts across the country relying on Howey. A friendly SEC also does not change this. We need a crypto market structure law,” he said.
Brogan said that he didn’t think the decision would have any direct effect on the lawmaking process, but the SEC could still solve questions regarding rulemaking.
“I think many in Congress would welcome that as the market structure legislation currently percolating appears dead in the water,” he said.
Garlinghouse wants to tie up loose ends with SEC
The SEC appeal decision may put the “final exclamation point” on whether XRP is a security, but the legal battle between Ripple and the SEC could be set to rage on.
In a March 19 Bloomberg interview, Garlinghouse brought up the possibility of going on the offensive with a cross-appeal, i.e. an appeal from an appellee requesting that a higher court review a lower court’s decision.
Related: Bitnomial drops SEC lawsuit ahead of XRP futures launch in the US
Namely, Garlinghouse wants to revisit the 2023 decision in which Judge Analisa Torres, while ruling Ripple’s publicly sold tokens did not constitute a security, levied a $125 million fine on Ripple, stating that the tokens should have been sold to institutional investors.
The firm is also subject to a five-year “bad actor” prohibition on fundraising which, says Brogan, could meaningfully impact its operations.
“At this point, all we’re fighting for is do we want to fight to get the $125 million back,” said Garlinghouse.
He added that while the XRP-securities decision was a “clear legal victory,” there are “pieces of it that we think could be kind of cleaned up. And the question is, do we want to fight that fight? Or can we come to an agreement with the SEC to drop everything?”
Outside of the courtroom, Congress is still working to make meaningful progress on the stablecoin bill. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, expects the final version to be ready in a couple of months.
The crypto framework bill FIT 21 failed to make it through the Senate in the 2024 legislative session, but some lawmakers are optimistic that it will make it through this session with “modest changes.”
The Blockchain Association, a crypto lobby group, expects both laws to pass by August, while US Representative Ro Khanna, a Democrat from California, says they could be finalized by year’s end.
Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
Criminals who refuse to attend their sentencing hearings will face further punishment under a new law.
The government is introducing the Victims and Courts Bill to parliament today, which will include more jail time or loss of privileges in prison in England and Wales for criminals who refuse to attend court for sentencing.
Several high-profile offenders have refused to face victims’ families, sparking a public outcry and calls for a change in the law.
Thomas Cashman, who murdered nine-year-old Olivia Pratt-Korbel in her home in Liverpool, refused to attend his sentencing hearing in 2023. Pic: PA
The families of murdered primary school teacher Sabina Nessa, law graduate Zara Aleena and mother-of-three Mary Jane Mustafa – also known as Mihrican “Jan” Mustafa – have all campaigned for the change after their killers were absent from sentencing hearings.
Ms Nessa’s sister, Jebina Islam, Ms Aleena’s aunt, Farah Naz, and Ms Mustafa’s cousin, Ayse Hussein, said: “This move holds offenders to account.
“It sends a clear and necessary message: the justice system is not something you should be able to opt out of.
“It is not about punishment through force – but about ensuring that perpetrators cannot remove themselves from the consequences of their actions.”
They said the legislation is a “step in the right direction” and the proposed punishments indicate it is “being taken seriously”.
The trio added: “This change supports victims and society alike. It shows justice being done.
“It gives families a moment of recognition and a form of reparation. It is a moment of reckoning for the convicted.”
Under the new legislation, judges will be able to sentence offenders for up to two more years in prison for avoiding justice.
Those already facing lengthy imprisonment or whole life orders could have a range of prison punishments, such as confinement to their cells and being stripped of privileges, such as extra gym time.
Read more from Sky News:
Teenagers to be allowed to drive trains
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Olivia Pratt-Korbel was killed by Thomas Cashman
Former Tory prime minister Rishi Sunak had pledged to change the law after meeting the mother of murdered nine-year-old Olivia Pratt-Korbel, and Sir Keir Starmer promised to enact it.
Thomas Cashman, the gunman who killed Olivia as he chased a drug dealer who had run into her Liverpool home, did not appear in court to hear his life sentence in April 2023.
Earlier this year, triple crossbow and knife killer Kyle Clifford refused to attend his sentencing when he received a whole life order.
Southport child murderer Axel Rudakubana was removed from his sentencing hearing for repeatedly shouting in January.
Justice minister Alex Davies-Jones said: “I would like to thank the remarkable families of Olivia Pratt-Korbel, Jan Mustafa, Sabina Nessa and Zara Aleena and countless others who have campaigned tirelessly for offenders to have to face the reality of their crimes by attending their sentencing.
“Justice isn’t optional – we’ll make sure criminals face their victims.”
The bill also says it will restrict parental responsibility from child sex offenders who commit serious crimes against their own children.
The powers of the Victims’ Commissioner will also be strengthened to require them to produce an independent report on whether agencies are meeting their statutory duty over the Victim’s Code to hold the government to account.
Child protection charity the NSPCC backed the move, saying they hope it will improve how young victims and survivors are treated, but said it was “not a complete solution”.
US Democrat lawmakers have launched a multi-angle attack on President Donald Trump’s crypto ventures with two bills and a subcommittee inquiry aimed at cutting his ability to profit from the initiatives.
The Modern Emoluments and Malfeasance Enforcement Act, or the MEME Act, aims to prevent federal officials from using their position to profit from memecoins, Democrat Senator Chris Murphy said in a May 6 statement.
If passed, the MEME Act prohibits the president, vice president, members of Congress, senior executive branch officials, their spouses and children from issuing, sponsoring, or promoting a security, future, commodity, or digital asset, according to the bill’s description.
Today I’m introducing a bill – the MEME Act – to ban a President or Member of Congress from issuing a meme coin.
The Trump Coin is the biggest corruption scandal in the history of the White House. @RepLiccardo and I are determined to put an end to this corruption – for good. pic.twitter.com/nQL9ZfIYYV
— Chris Murphy 🟧 (@ChrisMurphyCT) May 6, 2025
Violators could face civil penalties of up to $250,000 and be required to fork over any profits to the US Treasury. Criminal penalties could also apply, including fines and up to five years behind bars.
US Representative Sam Liccardo, another Democrat, introduced companion legislation in the House of Representatives. However, Trump’s party, the Republicans, controls both chambers, and the legislation will need Republican support.
Meanwhile, Democratic Senator Richard Blumenthal, a ranking member of the Permanent Subcommittee on Investigations (PSI), said in a May 6 statement that the committee is opening a preliminary inquiry into the Official Trump (TRUMP) token, Trump-backed platform World Liberty Financial (WLFI), and other associated business ventures.
As part of the inquiry, the PSI sent letters to the company behind the Trump coin, Fight Fight Fight, and WLFI, asking for records and communications between the companies and the Trump organization.
With his cryptocurrency schemes, Trump is putting a for sale sign in front of the White House. That’s why, as Ranking Member of the Permanent Subcommittee on Investigations, I’m launching an inquiry into this brazen corruption whose scope & scale is staggering. pic.twitter.com/3SiaCrthN8
— Richard Blumenthal (@SenBlumenthal) May 6, 2025
At the same time, Blumenthal says the subcommittee is asking for answers about what steps the firms have taken to address possible conflicts of interest.
Main points of interest flagged by the PSI include fees the president is making on the TRUMP token and the nearly 50% spike in value from $9.40 to $13.65 after the TRUMP coin website announced on April 23 that the top 220 holders of the token would be invited to a gala dinner at the White House.
Soon after launch on Jan. 18, the Trump coin hit its all-time high of $73.43, according to CoinGecko. However, it has since lost 85% of its value and is trading for $11.13.
More than half of TRUMP holders in profit
Roughly two million wallets have bought TRUMP, with an extra 54,000 adding the token to their stash after the dinner announcement, according to data shared with Cointelegraph from blockchain analysis firm Chainalysis.
Around 764,000 of these, most with small holdings, lost money on the coin, while the 58 investors in the token have made profits of over $10 million each, totaling an estimated $1.1 billion.
At the same time, Chainalysis says the memecoin creator has made $320 million so far, with an extra $1.3 million coming in since the White House dinner announcement.
Related: Dem lawmakers object to hearing, citing ‘Trump’s crypto corruption’
Meanwhile, a trucking logistics firm announced plans on April 30 to build a TRUMP coin treasury through a $20 million convertible note issuance.
Javier Selgas, CEO of Freight Technologies, said the tokens are an “excellent way to diversify our crypto treasury and also an effective way to advocate for fair, balanced, and free trade between Mexico and the US.”
The firm also acquired $5.2 million of the Fetch.ai network’s utility token FET on April 1.
Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express
South Korea’s Democratic Party leader Lee Jae-myung has reportedly become the latest presidential candidate to promise the approval of spot crypto exchange-traded funds (ETFs) and other crypto-friendly measures, should he be elected.
Lee announced his crypto promises on May 6 as part of a broader initiative to provide more investment opportunities for Korea’s youth, one of the main target demographics for the fast-approaching June 3 election.
“I will create a safe investment environment so that young people can [build] assets and plan for the future,” The Korea Economic Daily (KED) quoted Lee as saying in Korean.
He also promised the legalization of spot crypto ETFs, lower transaction fees, and more consumer protection measures.
Lee’s Democratic Party of Korea is the favorite to win the presidential election with 42% support, according to a survey conducted by Korea’s National Barometer Survey between April 24 and 30. Korea’s acting president, Han Duck-soo, came in second at 13%.
This is the first time Lee has mentioned crypto as part of his presidential campaign, KED noted.
The Democratic Party made similar promises in its 2024 general election campaign, including passing spot crypto ETF legalization. However, progress stalled, KED said.
South Korea’s People Power Party makes similar promises
South Korea’s ruling party, the People Power Party, also reportedly made crypto policy promises in late April, which included allowing spot crypto ETFs, dismantling Korea’s controversial one-exchange-one-bank rule, and establishing a regulatory framework for stablecoins.
The one-exchange-one-bank rule in South Korea is a regulation that limits each crypto exchange to working with only one local bank. It is intended to prevent money laundering and strengthen transparency by ensuring that the identities of crypto investors can be verified when trading crypto.
South Korean industry officials estimate that 16 million or 31% of the country’s 51.7 million people have access to a crypto account.
Related: North Korean spy slips up, reveals ties in fake job interview
Kim Moon-soo is running as the People Power Party’s candidate — a party previously led by Yoon Suk Yeol, who was impeached after he declared martial law in December.
The controversial measure triggered a considerable fall in Bitcoin (BTC), Ether (ETH), and other cryptocurrencies. However, most coins recovered when the martial law was lifted around six hours later.
Korea’s Constitutional Court upheld the impeachment of Yoon in a unanimous 8–0 decision decision on April 4, effectively removing him from office.
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