In the ongoing legal case between the SEC and Ripple Labs, the commission declared XRP as a security. However, there seem to be some twists through the unfolding events in the lawsuit.
The US Securities and Exchange Commission is one of the notable regulators in the crypto space. However, as crypto assets’ adoption and acceptance became broader, many counter activities started springing up within the industry. In addition, the increasing negative impacts and numerous losses of investors’ funds spiked the need for cryptocurrency regulation.
Several jurisdictions have different approaches to controlling and monitoring virtual assets. While some countries banned crypto assets, others exercised subtle control. Despite the rigorous methods of some watchdogs, their presence is helping to protect users.
The SEC meets aggressive enforcement action on any asset and service company that defaults on its rules. The high-handedness of the commission’s regulatory approach led to its lawsuit with Ripple XRP.
Reasons SEC Classified XRP As Security
The Ripple community is getting some calmness through the process flow from some motions filed for the Summary Judgment. According to some experts, the SEC failed to authenticate the XRP token as a security.
From the submitted motions, attorney James Filan interpreted the commission’s arguments in the case. He noted that the commission reports that it wasn’t calling XRP security. The lawyer stated that the commission intends to receive judgment on the case through the incorporated secondary sales of the token.
According to the arguments, the SEC claims that buying XRP is an investment in a common enterprise. This includes Ripple and its token holders. To the commission, the purchase remains an investment in the common enterprise through vertical or horizontal commonality.
In its line of argument, the SEC implies that XRP may not be a Security per se. But, its sales approach proves otherwise. This is because the token has no other possible sales stance but as a Security.
Commission Misses Crucial Points
Over the past few days, the Amicus Curiae in the lawsuit, John Deaton, pointed out crucial things the SEC is missing in Summary Judgment. Deaton stated the commission failed to provide any price correlation of the XRP token. Also, it could not rely on experts’ comments for its motions.
Ripple is on an upward spree l XRPUSDT on Tradingview.com
According to Deaton, the commission lacks any comment that reflects the influence of Ripple to control the price of XRP. Also, no testimony can prove that XRP holders depended on or acted on Ripple Labs’ efforts.
Recall that the SEC filed the lawsuit against Ripple Labs, accusing the firm of selling over $1.3 billion of Ripple. The commission stated that the sales were between 2013 and 2020. The drag in the case has been if XRP is a security or a currency.
Featured image from Pixabay, Chart: TradingView.comExplore how Bitcoin, CBDCs, and stablecoins are reshaping global finance, challenging the US dollar's dominance, and heralding a new era of digital currency. Dive into insights on their impact, adoption, and the evolving regulatory landscape.
WeiliangExplore an in-depth analysis of the FDIC's allegations against Cross River Bank for 'unsafe' lending practices, and its implications for the finance and fintech sectors.
MiyukiAs per the study, Egypt has set its sights on introducing a digital currency, the E-Pound, issued by the Central Bank of Egypt, with a target launch by 2030.
AlexEven as it retraces that value, it could be likely that increased trading activity on ETFs may not necessarily translate to increased demand for spot products.
AlexExplore Intermex's decision not to use Ripple for Mexican remittances. This in-depth article delves into the implications for the remittance market, contrasting strategies in the financial sector, and the future of cryptocurrency in global money transfers.
BrianExplore the strategic move behind Binance's exclusion of Banco de Venezuela from P2P payments. Understand the interplay between traditional banking and modern cryptocurrency platforms, the impact on users and the market, and the future of financial transactions in our comprehensive analysis
WeiliangUnpacking the latest developments: French authorities probe a prominent tech firm for anticompetitive practices in the graphics cards sector. Dive into the details of the raid and its broader implications on the cloud computing industry and market dynamics. Read on for an insightful analysis of the Autorité de la Concurrence's findings and the pivotal role of hyperscalers in shaping the future of tech.
MiyukiExplore the intricacies of Binance's alternative URLs in India amidst regulatory challenges. Understand the implications for users, the crypto exchange's innovative responses, and the future of cryptocurrency in the country.
WeiliangThose staking for a 4-year period with over 100,000 ZKF can mint a domain of any length for 1 USDC.
AlexExplore Ripple's groundbreaking participation at WEF 2024, led by CEO Brad Garlinghouse. Discover how Ripple's blockchain technology is set to revolutionize global finance, from enhancing cross-border transactions to shaping the future of liquidity management and sustainable finance. Join us as we delve into Ripple's impact and visionary projects at the forefront of financial innovation.
Miyuki