Update on the Ripple vs Securities and Exchange Commission SEC case as of July 3 2024
As the digital currency enthusiasts continue to monitor the ongoing legal tussle between the U.S. Securities and Exchange Commission (SEC) and the blockchain pioneer Ripple, outcomes from parallel litigations are increasingly cited in legal strategies.
In a recent maneuver, Ripple’s attorneys have submitted a notice of supplemental authority, drawing attention to a judgment in the SEC’s lawsuit against the global cryptocurrency platform Binance. This particular ruling highlighted the regulatory body’s problematic methodologies.
Ripple underscored the significance of the June 28 Memorandum Opinion and Order in the Binance litigation, which bolsters their stance on the ambiguity of regulatory guidelines concerning digital currencies. This was echoed in a post by James K. Filan, a defense lawyer and noted commentator on the case, on July 2.
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The legal representatives of Ripple have emphasized that intangible digital assets do not align seamlessly with the framework established in the Howey Test’s brief seven-page decision. Moreover, the SEC’s approach to regulate this multi-billion-dollar sector via litigation—on a case-by-case and coin-by-coin basis—may not be the most effective strategy, posing a risk of inconsistent outcomes and leaving stakeholders and potential investors without definitive guidance.
Furthermore, Ripple’s legal team accentuated in their closing remarks that the SEC, in its action against Binance, did not accuse Ripple of recklessness, countering the SEC’s claims of fraudulent and reckless behavior by Ripple in the sale of XRP tokens.
Recalling a previous development, Ripple referenced the SEC’s action against Terraform Labs, highlighting the proposed settlement that required Terraform to disgorge $3.59 billion and pay a civil penalty of $420 million. This comparison was intended to demonstrate the disproportionality of the civil penalty demanded in the Ripple/XRP litigation.
**The Potential Impact on XRP:**
Currently, XRP, a focal point in Ripple’s news and the extended legal dispute, is trading at $0.48, marking a 0.35% increase for the day and a 1.72% rise over the week. This uptick is an attempt to recover from a 7.51% decline over the past month, potentially influenced by the latest developments.
The cryptocurrency community remains vigilant, tracking all updates related to Ripple and XRP, especially those pertaining to the Ripple v. SEC case, seeking clues about the potential trajectory of XRP’s value in response to significant events. Nevertheless, it is essential for investors to conduct thorough research before making investment decisions.
**Disclaimer:**
The information provided here is not to be construed as financial advice. Investment activities are inherently speculative, and there is always the possibility of loss when investing capital.