The top financial institution said it is difficult to determine the impact of the SEC v. Ripple ruling on the United States crypto space.
Analysts at Bank of America (BoA) commented on Judge Analisa Torres’ recent ruling in the SEC v. Ripple lawsuit.
According to a recent CoinDesk report, the American banking giant said Judge Torres’ decision did not clarify the regulatory uncertainty issue in the US crypto space.
The leading financial institution noted that it is difficult to determine the implication of the court’s ruling on the industry, even though digital asset enthusiasts embraced the decision.
“[…] Implications of the rulings are difficult to determine,” the bank said.
Notably, Bank of America made this known while highlighting the importance of regulatory clarity in driving the mainstream adoption of crypto.
US Crypto Industry Lacks Clear Rules
Unlike most developed countries, the US has not developed a comprehensive framework for its industry. Instead, the nascent industry is governed by opaque administrative guidelines and unclear rules.
The SEC has continued to tout itself as the appropriate regulator for the industry and has used aggressive enforcement actions to regulate the industry. In the eyes of the SEC, all crypto assets other than Bitcoin are securities.
It has also ignored calls to provide clear guidelines while reiterating that existing securities laws are clear enough. To this end, the agency is battling a lawsuit filed by American exchange Coinbase. The company looks to force the SEC to respond to its rulemaking petition.
Judge Torres’ Ruling Didn’t Provide Clarity
Many experts speculated that Judge Torres’ ruling could provide regulatory clarity for the emerging market. However, BoA does not think the verdict provided clear implications for the broader crypto market.
Recall that Ripple recorded a partial victory against the SEC. Aside from XRP being declared as a non-security, Judge Torres also ruled that Ripple’s programmatic sales on digital exchanges do not constitute securities.
However, the judge concluded that Ripple’s XRP sales to institutional investors violated securities laws.
Reacting, Bank of America said:
“The judge ruled that Ripple’s programmatic sale of XRP on digital asset exchanges did not constitute an unregistered offer and sale of investment contracts, but primarily because an initial unregistered offering and sale to institutional investors had already occurred that created a market.”
BoA Praises Ripple’s XRP Offerings
Meanwhile, Bank of America heaped praises on Ripple’s XRP offerings. The leading financial institution touted Ripple’s XRP offerings as “unique.”
Notably, BoA’s recent report comes a few weeks after the top financial institution recognized Ripple’s efforts in cross-border settlements.
As reported, Bank of America highlighted Ripple’s ability to facilitate cross-border settlements using blockchain technology.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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