The U.S. Securities and Exchange Commission (SEC) has moved to challenge the court’s ruling in its ongoing case against Ripple Labs. On Wednesday, the SEC filed a "notice of appeal" with the Second Circuit Court of Appeals, roughly two months after Judge Analisa Torres issued a final decision.  

Kraken has announced that it will cease support for Monero (XMR), a privacy-focused cryptocurrency, in the European Economic Area (EEA). Starting on October 31, Kraken will halt trading and deposits for all Monero markets, including those paired with U.S. dollars, euros, Bitcoin (BTC), and Tether (USDT).

The U.S. Securities and Exchange Commission (SEC) has announced that Gurbir S. Grewal, the director of the division of enforcement, will step down from his role next week. Sanjay Wadhwa will take over as acting director following Grewal’s departure.

Top stories in the Crypto Roundup today:

• SEC Files Notice to Appeal Landmark Ruling on Ripple's XRP Sales
• Kraken Plans to Delist Monero in European Economic Area Over Regulatory Pressure
• SEC Enforcement Chief Gurbir Grewal Steps Down After Years of Targeting Crypto Firms
• Stablecoin Market Cap Records Twelfth Consecutive Monthly Increase

SEC Files Notice to Appeal Landmark Ruling on Ripple's XRP Sales

The U.S. Securities and Exchange Commission (SEC) has moved to challenge the court’s ruling in its ongoing case against Ripple Labs. On Wednesday, the SEC filed a "notice of appeal" with the Second Circuit Court of Appeals, roughly two months after Judge Analisa Torres issued a final decision.

Back in July 2023, Judge Torres ruled that Ripple’s institutional sales of XRP had violated federal securities laws, while sales made to retail investors through exchanges did not. Although the SEC initially sought to appeal this partial victory through an interlocutory appeal, it was denied. Now, the regulator is taking a different path with a full appeal.

In August 2023, the court ordered Ripple to pay a fine of $125 million, which is much less than the $2 billion sought by the SEC, which included interest and penalties. The court’s enforcement of the fine is currently on hold until the appeal process is completed.

The SEC’s spokesperson, commenting on the decision to appeal, stated that the district court’s ruling contradicts long-standing precedents set by the Supreme Court and securities laws. They added that the SEC looks forward to presenting its case in the Second Circuit.

Ripple executives reacted strongly to the SEC’s latest move. CEO Brad Garlinghouse tweeted that the SEC had “lost on all key issues” and emphasized that XRP’s classification as a non-security remains the legal standard. Chief Legal Officer Stuart Alderoty expressed disappointment but said the appeal was anticipated.

While the notice of appeal has been filed, the SEC has yet to submit the actual appeal, which could take months. On Monday, Bitwise filed an application to list a spot XRP ETF in the U.S.

Kraken Plans to Delist Monero in European Economic Area Over Regulatory Pressure

Popular cryptocurrency exchange Kraken has announced that it will cease support for the privacy-focused token Monero (XMR) in the European Economic Area (EEA). Starting on October 31, Kraken will halt trading and deposits for all Monero trading pairs, including against USD, EUR, BTC, and USDT.

The exchange cited regulatory obligations as the reason for discontinuing Monero services in the EEA, stating that after thorough consideration and exploring various alternatives, it was left with no choice but to delist Monero due to new compliance requirements in the region.

Though trading and deposits will end in October, users will have until the end of the year to withdraw their XMR tokens from the platform. Any remaining Monero holdings not withdrawn by that date will be converted into BTC, with the distribution of the converted assets set for January 6, 2025.

This move comes as a response to regulatory developments within the European Union that restrict crypto asset service providers (CASPs) from facilitating privacy tokens like Monero or offering services to anonymous users.

Kraken has gradually reduced Monero support over the past few years. Earlier this year, the exchange discontinued Monero trading in Ireland and Belgium while in 2021 it halted Monero services for customers in the United Kingdom.

SEC Enforcement Chief Gurbir Grewal Steps Down After Years of Targeting Crypto Firms

The SEC has announced that Gurbir S. Grewal, the director of the division of enforcement, will step down from his role next week, and Sanjay Wadhwa will take over as acting director following Grewal’s departure.

SEC Chair Gary Gensler praised Grewal’s contributions during his three-year tenure, noting that he prioritized investor protection and played a pivotal role in the agency’s enforcement actions. Gensler expressed gratitude for Grewal’s public service, stating that the agency was “incredibly fortunate” to have him.

Grewal led the SEC’s enforcement division through a turbulent period, especially following the 2022 collapse of FTX. Under his leadership, the SEC ramped up its enforcement efforts against cryptocurrency firms, filing over 100 lawsuits against companies in the sector. Notable cases included actions against Coinbase, the largest U.S. crypto exchange, and Binance, the world’s biggest exchange by trading volume.

However, Grewal’s enforcement strategy drew criticism from some lawmakers and crypto advocates. Representative Tom Emmer, a vocal critic of the SEC’s crypto policies, expressed relief at Grewal’s departure, accusing him of fostering “lawlessness and chaos” at the regulator. Emmer’s sentiments were echoed by others in the crypto space, who have criticized the SEC’s aggressive approach toward digital assets.

Despite this, the SEC highlighted Grewal’s efforts to tackle non-compliance in the crypto sector, where Gensler has said violations of securities law are widespread. Grewal has referred to some crypto-related cases involving “Ponzi schemes” and “affinity frauds.”

Stablecoin Market Cap Records Twelfth Consecutive Monthly Increase

The total market capitalization of the stablecoin sector rose 1.5% to $172 billion last month, recording its twelfth consecutive monthly increase in the metric to reach its highest market cap since April 2022.

The stablecoin market’s dominance is now at 7.55%, down from 8.04% in August and registering its first decline in four months. Stablecoin trading volumes have fallen 39.4% to $683 billion in September as of the 23rd.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report.

State of the Crypto by Top Tier Exchange Volume

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