Bank of America (BofA) analysts have released a new research report in light of the latest developments on the regulatory front. The report mentioned an altcoin project with ‘unique offerings’…
Bank of America evaluates the latest developments in the USA
According to a recent Bank of America report, the SEC-Ripple lawsuit outcome highlights the importance of a comprehensive regulatory framework. On July 13, Ripple achieved a partial victory in the SEC lawsuit. Speculation followed that the outcome of the lawsuit in favor of Crypto would be appealed and overturned. These debates have been on the agenda for weeks.
According to bank analysts, the SEC has made little effort to provide regulatory average guidance throughout the litigation process. The report included the implications that XRP as a cryptocurrency has unique properties, thus making it difficult to determine the outcome of the case.
On July 13, Ripple achieved a partial victory in the case in the US District Court for the Southern District of New York. The court ruled that the sale of XRP on exchanges and through algorithms does not constitute an investment contract. However, at the same time, the court found that the corporate sale of tokens violated federal securities laws. This decision leaves other cases in the crypto market with uncertainty.
Analysts weigh Ripple case cautiously on altcoin investors
Bank of America analysts Alkesh Shah and Andrew Moss stated that the outcome of the lawsuit affected institutional investors and the existence of a previously unregistered offering was the main reason for this decision. This decision directly affects the future situation of Ripple. It also serves as an important example for other crypto companies and investors.
Bank of America makes a distinction between crypto and traditional markets, noting that blockchain-specific assets are not yet fully regulated. However, traditional assets like ETFs, repos and gold already have clear rules. According to analysts, this is the main sign that the crypto industry is not yet fully mature. It also reveals that the lack of regulators leaves the industry with uncertainties.
Analysts also stated that the court decision will have a positive impact on Coinbase (COIN). As a result of the Ripple lawsuit, its exchange moderately reduces the regulatory pressure on its stock. It also allows the company to operate more easily in the evolving regulatory environment.
The recent court ruling in the Ripple-SEC case showed again that the crypto industry needs a comprehensive framework. Clearer guidelines and regulations are needed to encourage mainstream adoption of cryptocurrencies, according to the analyst.
SEC lawsuit is under appeal
As we quoted as Kriptokoin.com, Ripple’s victory left its place to an appeal process. Despite this, most experts argue that the result will now be permanent.
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