The cryptocurrency community is on the edge of their seats, fully aware of the gravity of the ongoing courtroom battle between the United States Securities and Exchange Commission (SEC) and blockchain company Ripple. Recent decisions in related cases continue to shape the legal landscape, adding to the anticipation of the resolution.
Ripple Cites Binance Case for Regulatory Clarity
Ripple’s legal team has filed a notice of supplemental authority, citing the recent decision in the SEC’s case against Binance. In the June 28 Memorandum Opinion and Order, the court highlighted issues with the SEC’s current regulatory practices, a point Ripple emphasized to argue the lack of regulatory clarity regarding crypto assets. Defense attorney and popular commentator James K. Filan shared this development in an X post on July 2, noting that “intangible digital assets do not fit neatly into the rubric outlined in the mere seven pages that comprise the Howey opinion.”
Ripple also pointed out the inefficiency of the SEC’s strategy of overseeing the billion-dollar crypto industry through litigation, which risks inconsistent results and leaves relevant parties and potential customers without clear guidance.
Ripple’s Defense Against SEC’s Allegations
Furthermore, Ripple’s legal team underscored that in the case against Binance, the “SEC did not even allege recklessness as to Ripple in its Complaint,” countering the SEC’s accusations of fraud and recklessness regarding the sale of XRP tokens.
In earlier updates, Ripple referenced the SEC’s case against Terraform Labs to highlight the “unreasonableness of the civil penalty sought” in the Ripple/XRP case. The proposed consent order in the Terraform case required over $3.5 billion in disgorgement and a $420 million civil penalty, which Ripple used to argue for a more reasonable penalty in their case.
Impact on XRP Price
XRP, the focus of every Ripple news report and a key player in a legal battle, currently trades at $0.48. This reflects a 0.35% increase today and a 1.72% gain this week as it strives to bounce back from the 7.51% loss in the past month. Recent legal developments have driven this upward trend.
The crypto community is actively engaged in monitoring the updates of the Ripple v. SEC case, eagerly seeking indications of how these developments might affect XRP’s price.
