XRP Price Drops as SEC Dismisses Ripple’s Arguments

As a researcher with extensive experience in the crypto market, I’ve witnessed firsthand the volatility and uncertainty that comes with investing in digital assets. Ripple’s ongoing legal battle with the SEC is a prime example of these challenges. Over the past few days, XRP has experienced a significant decline in value, down by 6.7% in the last 24 hours, and 88% from its all-time high.

In the penultimate phase of Ripple‘s legal battle with the Securities and Exchange Commission (SEC), XRP, the native token of Ripple, has experienced a significant drop in value. Over the past 24 hours, XRP has witnessed a steep decrease of approximately 6.7%, currently priced at around $0.43. It is essential to mention that the token has plummeted by over 88% from its record high of $3.84, which was reached nearly seven years ago.

At a pivotal moment, the Securities and Exchange Commission (SEC) has responded to Ripple’s recent legal arguments in their ongoing case. Notably, Ripple had planned to utilize the SEC vs. Binance case in their defense, criticizing the SEC’s approach of “enforcing regulations” instead of clearly defining them in the crypto sphere.

Latest Developments

In a recent court submission on the X case, defense attorney James Filan revealed that the Securities and Exchange Commission (SEC) challenged Ripple’s arguments. The SEC deemed Ripple’s reference to the Binance case as insignificant and accused Ripple of cherry-picking the ruling to minimize their errors and resist harsh consequences.

The SEC chose not to address the topic of Binance Coin’s secondary market transactions or XRP‘s programmatic sales in the context of the ongoing Ripple case. These matters were deemed irrelevant to the legal proceedings against Ripple.

One key argument in the ongoing legal dispute centers around the fair notice doctrine, which holds that individuals must be adequately notified of any potential legal claims against them. The Securities and Exchange Commission (SEC) maintains that the crypto sector had been made aware of regulatory guidelines since the publication of the 2017 DAO report. Subsequently, several XRP sales by Ripple allegedly transpired.

Additionally, the regulatory body disclosed that Ripple had sought legal counsel over potential regulatory concerns in relation to their sales transactions. This implies that the corporation had been made conscious of potential infringements.

The court ruling on Binance noted that while determining fair notice is an objective process, it was significant that the defendants were reportedly aware of the potential legal action against them, similar to Ripple’s knowledge of the risks involved in their actions and their decision to move forward despite this awareness.

As a researcher examining the ongoing dispute between Ripple and the Securities and Exchange Commission (SEC), I’d like to point out that Ripple has advocated for a fine not surpassing the $10 million mark, whereas the SEC has put forth a proposed penalty of a staggering $2 billion.

Ripple’s Confidence

The continuous examination of Ripple’s legal situation by legal authorities has not been ignored within the cryptocurrency sphere. In May, well-known crypto analyst Jason Pizzino issued a caution to investors regarding Ripple, suggesting that it provided the least reward with the greatest risk among the leading 11 altcoins.

In spite of the obstacles, XRP manages to hold a market value of $25.2 billion, making it the seventh largest cryptocurrency in terms of market capitalization.

Additionally, Ripple is pushing forward with new developments. On June 12th, they unveiled their latest innovation: Ripple USD (RLUSD), a stablecoin that maintains a 1:1 value with the US dollar. Intended to enhance transparency and stability, this stablecoin will function on both the XRP Ledger and Ethereum networks. Its release is anticipated towards the end of the year.

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2024-07-04 15:15