On the day the US SEC announced charges against the creators of Stoner Cats NFT, encryption lawyer Bill Morgan pointed out that although such cases did not establish a legal precedent, they did help to fuel the SEC’s influence on the encryption industry.
He emphasized the importance of Ripple Labs’ ongoing legal dispute with the SEC and said that if Ripple had not taken the SEC to court, all cryptocurrencies except Bitcoin might now be automatically classified as securities.
Morgan shared further thoughts on Judge Torres’ July 13 ruling regarding XRP. Morgan noted that although XRP is not considered a security, the regulatory outlook for its sale or use remains unclear due to the SEC’s appeal plans.
Until that legal case and subsequent appeals are fully resolved, it remains unclear whether Ripple and its customers will feel safe under SEC regulation.