SEC drops Ripple lawsuit, BTC ETF optimism grows, Ethereum's EIP-7540 to revolutionize RWAs and more.
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SEC Dismisses Charges Against Ripple Executives

SEC Dismisses Charges Against Ripple Executives

SEC drops Ripple lawsuit, BTC ETF optimism grows, Ethereum's EIP-7540 to revolutionize RWAs and more.

Date:
Oct 21, 2023
| Issue
#
131

Welcome to the final edition of the week with Datawallet Daily! Here's a roundup of the most influential crypto stories from the last 24 hours:

Before we explore the recent developments surrounding Ripple;s legal win and today's top stories, let's first glance at the current market trends

SEC dismisses charges against Ripple execs

The U.S. Securities and Exchange Commission (SEC) has withdrawn its lawsuit against Ripple Labs CEO Brad Garlinghouse and Executive Chairman Christian Larsen. This marks the third consecutive victory for Ripple in its prolonged legal tussle with the SEC. The original lawsuit from 2020 accused Ripple and its key executives of conducting an "unregistered, ongoing digital asset securities offering" of XRP, with the executives allegedly participating in about $600 million of unauthorized securities sales. 

This lawsuit had severe repercussions for Ripple, leading to the delisting of XRP from most U.S. exchanges and straining Ripple's industry partnerships. Despite facing immense pressure, Ripple chose to challenge the allegations. Their efforts seem to be paying off with a series of legal triumphs, including a significant ruling by Judge Analisa Torres, which found Ripple's sales of XRP to exchanges didn't infringe existing securities regulations. 

However, the SEC's recent decision to drop the case against Garlinghouse and Larsen suggests a shift in the judicial narrative, possibly signaling that the SEC's approach to crypto oversight might be too aggressive.

BTC ETF coming in the next few months, says JPMorgan

Bitcoin (BTC) has experienced a surge in value this week, attributed to growing optimism surrounding the potential endorsement of several spot Bitcoin exchange-traded funds (ETFs), according to a research report by JPMorgan (JPM) on Wednesday. 

The report highlighted that the Securities and Exchange Commission (SEC) choosing not to challenge a recent decision in the Grayscale case brings the approval of these applications closer. Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), holds the distinction of being the largest cryptocurrency fund globally.

New Ethereum imrovement proposal for RWAs

A new Ethereum Improvement Proposal (EIP-7540) is being introduced to modify the existing ERC-4626 tokenized vault standard by adding asynchronous deposit and redemption flows. The current ERC-4626 standard allows for atomic "all or nothing" transactions, but the proposed EIP-7540 would accommodate asynchronous transactions, enabling conditions to be met before an action is completed. This could be particularly beneficial for protocols dealing with real-world assets (RWAs), cross-chain lending, and liquid staking. 

However, Asad Khan of Centrifuge points out that while this EIP could standardize on and off-chain transactions, asynchronous transactions might increase security risks. Jeroen Offerijns, Centrifuge’s CTO, emphasizes the need for extensive testing and auditing of any asynchronous vault implementation, noting that EIP-7540 is still in preliminary discussions on the Ethereum Magicians forums.

ETH crosses $1.6K while altcoins surge

Cryptocurrencies experienced a significant surge, with some major tokens increasing by as much as 13%. This sudden rise was mainly driven by a notable increase in the value of Bitcoin (BTC), which in turn boosted the overall crypto market. The rally was fueled by optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF).

Following a week of losses, all major tokens managed to reverse their downward trend. Bitcoin surpassed the $30,000 mark, while Ether (ETH) exceeded $1,600 on Friday. XRP saw a gain of 7.2% after a crucial court ruling favored Ripple, a payments company, thereby improving market sentiment. Additionally, Solana's SOL witnessed an impressive 12% rise, extending its weekly gains to over 25%.

Other breaking news

Wrapping up

As we conclude this week's edition of Datawallet Daily, the crypto landscape has witnessed significant shifts. Ripple emerges triumphant against the SEC, a potential BTC ETF approval looms on the horizon, and Ethereum's EIP-7540 promises to transform tokenized vault standards. With ETH crossing the $1.6K mark and altcoins rallying, the market remains dynamic and ever-evolving. Stay informed and remain vigilant in your investment decisions. Until our next update, happy trading!