Investors in Ripple and holders of XRP are not the only ones keeping a close watch on the continuing dispute with the U.S. Securities and Exchange Commission. Large financial institutions are also interested.
The London-based IG Bank released a story on the ongoing Ripple vs. SEC dispute late last week. This development is intriguing since it demonstrates that large financial institutions continue to monitor the crypto business.
IG Bank is a Swiss-regulated financial company providing professional customers with investing and trading services.
It stated that an “SEC win might substantially restrict the growth potential of crypto firms.” Moreover, crypto businesses such as Ripple often issue new coins to earn revenue. The bank described the situation in detail.
John Deaton, the inventor of Crypto Law and an advocate for Ripple, issued an unsettling warning over the weekend.
Following a White House strategy brief on minimizing crypto risks, he warned, “We will soon see the ultimate and most aggressive campaign to shut down crypto.” The assertion read:
We’ve spent the last year assessing the hazards posed by cryptocurrencies and moving to minimize them using the Executive Branch’s available authority.
The regulatory situation in the U.S. remains quite uncertain. There are negative signals such as this statement and the SEC’s ongoing enforcement efforts. Positively, the recently appointed head of a House Financial Services Subcommittee on Digital Assets intends to make the United States the global leader in fintech innovation.
They cannot have it both ways, thus the Ripple case is much more important. A successful conclusion for Ripple will convey the correct message to fintech companies, luring them to the United States. In the event of the opposite conclusion, crypto firms and talent are likely to leave the industry.
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