In a recent turn of events, the court has ruled in favor of private fund managers, deciding that the U.S. Securities and Exchange Commission ’s enhanced regulation for private fund advisers should not be enforced., the SEC adopted a rule to enhance the regulation of private fund advisers to protect investors and prevent fraud. This “Final Rule,” published on August 23, 2023, was set to be codified in the Code of Federal Regulations.
However, it was challenged by several private fund manager associations and ultimately canceled by the United States Court of Appeals for the Fifth Circuit.The “Final Rule” could have had a major impact on the SEC’s ability to enforce disclosure requirements on crypto firms as well.“What President Roosevelt did is he created this Commission to oversee that you the investors get the disclosure. And in the crypto markets, they are not giving you that disclosure.
Commenting on the same, expressing his discontentment with the SEC’s attempt to widen its overreach in the crypto market,“I am once again asking how many tax dollars have been wasted through failed efforts by Gensler’s SEC to expand its jurisdiction beyond what the law allows?” Here, it’s worth remembering that this update comes at a time when Ripple is already expecting a court decision in their case against the SEC.Despite the ongoing legal battle between Ripple and the SEC, rumors are circulating about the potential launch of XRP ETFs.
With the SEC approving Bitcoin spot exchange-traded funds and Ethereum ETFs nearing launch too, many believe the SEC might be adopting a more favorable stance towards cryptocurrencies now.Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life.