In the SEC’s ongoing legal fight with Ripple, they’ve filed a memo trying to speed things up and potentially end the case. This caused a small 0.04% drop in XRP, the fifth-largest cryptocurrency, after it had gained 0.36% the day before, closing at $0.5050.
The SEC’s approach to regulating cryptocurrencies has raised concerns. Some think they’re going too far, leading to public anger and demands for more transparency. Some even question if Gary Gensler, the SEC chairman, is pushing the boundaries too much. Let’s explore the SEC’s side of the story.
What’s the SEC’s Position on the Memorandum?
SEC’s Request for a Pause: The SEC has submitted a 20-page response supporting its request for an appeal in the Ripple (XRP) case. They believe it’s in everyone’s best interest, including the court and the involved parties, to temporarily stop the case. The SEC argues that Ripple is trying to prolong the case to continue selling XRP.
Saving Resources: The SEC wants to pause the entire case to save time and resources for both the court and the parties involved. They point out that Ripple’s defense hasn’t provided any examples of similar cases where interlocutory orders didn’t involve legal questions. The SEC’s case revolves around whether XRP is a security, which is a significant issue for the cryptocurrency market. They mention that the Second Circuit often allows interlocutory review for cases with similar security-related questions.
Referring to Previous Cases: Additionally, the SEC brings up the SEC v. Terraform Labs case, in which Judge Rakoff criticized Judge Torres’ ruling. The SEC also argues that Ripple doesn’t have a strong interest in resolving the case efficiently.
The SEC Cannot Dismiss the Possibility of Crypto Damage?
Ripple’s Defense Stance: Ripple’s defense has revolved around their argument that the essential facts about XRP are not in dispute. They maintain that the SEC is not disputing these facts but instead raising legal questions.
SEC’s Resource-Saving Request: The SEC is asking for a temporary pause in the legal proceedings to save resources. They argue that this pause won’t harm XRP investors significantly, considering the lengthy legal battle.
Impact on XRP Investors: Critics, however, claim that the SEC’s actions have negatively affected XRP investors. They are calling for clearer cryptocurrency regulations in the United States due to these concerns.
XRP Price
The ongoing legal battle has left XRP in a state of uncertainty. Depending on the outcome of the SEC’s appeal motion, its price could potentially fall below $0.48, with hopes of avoiding a drop to $0.4322.
If both Ripple and the SEC receive favorable assessments for their filings, it could trigger the involvement of key technical indicators like the trend line and the 200-day Exponential Moving Average (EMA).
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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