Ripple Opposes SEC’s Regulatory Tactics

The prolonged legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has entered a fresh phase as Ripple recently filed a Supplemental Authority Notice. This notice, submitted to Judge Analisa Torres on July 2, 2024, aims to bolster Ripple’s stance against the SEC’s call for a decisive judgment. Citing Binance’s recent court victory, Ripple argues that the SEC’s regulatory methods are flawed and inconsistent, especially when using court rulings to govern the cryptocurrency sector.

What Is Ripple’s Argument?

In its filing, Ripple emphasized that digital currencies don’t seamlessly align with the conventional securities framework, commonly known as the Howey Test. The seven-page document asserts that the SEC’s preference for enforcement actions over explicit regulatory guidelines creates uncertainty for industry participants and results in erratic legal outcomes. Access COINTURK FINANCE to get the latest financial and business news.

Ripple’s core tactic is to compel the SEC to rethink its regulatory strategy for the crypto industry.

How Will the SEC Respond?

The SEC plans to counter Ripple’s claims by pointing to its victory in the Terraform Labs case, where Judge Rakoff ruled that the company and its founder Do Kwon breached U.S. securities laws by not registering TerraUSD and Luna as securities. This ruling may bolster the SEC’s position against Ripple. Additionally, Judge Rakoff questioned the Programmatic Sales ruling of XRP, suggesting that Judge Torres might have erred in her judgment regarding XRP’s classification.

Key Takeaways for Investors

• A Ripple win could significantly boost XRP’s market value.
• An SEC victory might result in a drop in XRP’s price.
• The case’s outcome will set a vital precedent for cryptocurrency regulation.
• Market analysts and legal experts are closely monitoring the case.
• XRP’s current price is influenced by speculation around an Ethereum ETF approval.

At present, XRP has experienced a slight uptick of 0.5%, with its trading price at $0.4792 and a market cap of $26.68 billion. Despite this increase, the price remains below the recent peak of $0.52, partially due to ongoing speculation about the approval of an Ethereum ETF. As the legal proceedings unfold, the final ruling will be crucial for both market stakeholders and legal authorities, potentially setting a significant regulatory precedent for cryptocurrencies.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.