The Effects of the SEC v Ripple Ruling Remain Ambiguous: Bank of America Pushes for Clarity -TGN

The aftermath of the court pronunciation the Securities and Exchange Commission (SEC) case against Ripple continues to be debated along many lines as industry analysts reflect judgment to find the necessary regulatory direction.

In a new investigative report released Friday, Bank of America (BAC) said a holistic view of the ruling shows it has done little or nothing to clarify the current situation.

Specifically, the bank noted that Ripple’s offering of XRP was unique, making it “implications, difficult to determine.”

Analysts at the bank led by Alkesh Shah and Andrew Moss explained that the subsequent sale on exchanges did not result in investment contracts and was therefore in compliance with security laws.

On July 13, the U.S. District Court of Southern New York handed Ripple a partial victory over the SEC after it ruled that selling on exchanges and through algorithms is legal, but conflicts with previous institutional sales.

While many observers to the positives including XRP’s re-listing on Coinbase followed by renewed institutional confidence, others believe the issue has not been resolved, leaving room for more drastic action by the SEC.

According to the report issued by BAC, a well-defined regulatory framework is necessary for a sustainable investment climate and regular institutional acceptance.

At this point, the bank said it continues to differentiate between crypto assets and trading traditional financial assets, including Exchange Traded Funds (ETFs), whose “rules have already been established and trading volumes have already reached trillions of dollars.”

SEC objection? No defense yet

A major reason for industry executives pushing for more regulation in the industry is the perceived appeal of the SEC. While unconfirmed, Gary Gensler expressed displeasure with the ruling, and recent trends point to it.

Court registrations of the Commission in the case against Terraform Labs suggest that an appeal may be imminent. The financial watchdog stated that the decision was flawed and urged the court not to take the same line.

“Those parts of Ripple have been ruled wrong and this court should not follow them.”

However, popular web3 and pro-XRP advocate John Deaton has mention that the ruling against the SEC is huge and that an appeal, should it happen, would not be a setback for the community.

Deaton added that it would be two years before a decision is made by the 2nd Circuit, emphasizing that Judge Torres’ decision is law until then.

However, without adequate regulation, future actions by the SEC to go after several altcoins it considers unregistered securities could justify Bank of America’s fears.