Ripple’s Court Victory Against SEC Could Help the NFT Division

The US Securities and Exchange Commission (SEC) has set out to regulate the NFT sector of the crypto industry. However, experts point to the rulings in the SEC’s case against Ripple (XRP), which could be transferable to NFTs.

In the US, the Securities and Exchange Commission (SEC) is once again trying to equate cryptocurrencies and platforms with securities and stock exchanges. This time it has taken aim at NFTs and the OpenSea platform, and an indictment appears to be in preparation. But has the SEC learned nothing from the years-long trial against Ripple and XRP, in which it came up short in two rounds?

More and more courts in the US are no longer following the SEC’s argument that crypto falls under securities laws. Ripple’s chief legal counsel Stuart Alderoty is currently reminding us of this via X . He has also dug up an SEC decision from 1976, where the authority had fundamentally decided against intervening in the art trade. The NFTs traded and produced at OpenSea are predominantly considered digital art – so there is a contradiction here between the SEC’s historical and current position.

Meanwhile , lawyer and crypto expert Bill Morgan is looking at the question of whether the SEC will seek an appeal in the Ripple and XRP case on X. Since the second ruling there in early August, there is a 60-day deadline to file an appeal. Ripple does not want to make use of this right. Morgan comes to the conclusion that the SEC would also rather forgo the risk of suffering another legal defeat. According to Morgan, the reasons for the judgment in Ripple and XRP are very cleverly constructed and leave the SEC little room to put forward new arguments. If the SEC loses in a higher court in the crypto case, this could block other initiatives by the authority, says Morgan.

Conclusion: Is the SEC drawing conclusions from the Ripple and XRP case?

The SEC has recently had little success in its attempts to assume responsibility for the crypto industry. Its thesis that many altcoins and, more recently, NFTs are securities has not been heard in court – on the contrary: judgments emphasize that citizens have the freedom to trade XRP and other cryptocurrencies on secondary markets.

OpenSea can be classified as such a secondary market and NFTs seem far from being a security. But the sword of Damocles – the SEC’s appeal – hangs over this description of the situation for almost 40 days, and could reopen the fundamental dispute.

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(Featured image by Moose Photos via Pexels)

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