• The legal team behind Ripple has started building a new defense using the recent settlement between the SEC and Coinschedule.
  • Ripple lawyers argue that there is a lack of legal clarity surrounding digital assets as securities.
  • An attorney familiar with the case stated that the Ripple execs could not have known they violated securities law if any in 2013.

Ripple continues to present a new defense for its case filed by the United States Securities & Exchange Commission (SEC). The latest filing from the legal team of the blockchain firm leverages the financial watchdog’s recent comments over “regulatory uncertainty.”

Ripple highlights the SEC’s lack of clarity

As part of Ripple’s new defense, the cross-border remittance firm used the enforcement action taken against crypto website Coinschedule to bolster its case.

The digital asset site Coinschedule was said to be promoting initial coin offerings (ICOs) and in return receiving funds from token issues, as stated by the SEC on July 14. 

Despite the regulator’s announcement, Republican SEC Commissioners Hester Peirce and Elad Roisman wrote in a public statement that they were displeased with Coinschedule’s settlement, which did not mention which tokens were illegally promoted.

The SEC’s settlement with the crypto site did not indicate which cryptocurrencies were securities, creating ambiguity for the financial watchdog’s guidance on determining whether a token being sold could be part of a securities offering. 

The Commissioners further highlighted that there was a lack of clarity around the Howey Test, a determining test for what qualifies as an investment contract. 

In light of the recent event, the legal team behind Ripple highlighted the settlement’s lack of regulatory clarity for market participants regarding the regulations surrounding securities and trading. 

Ripple executives Brad Garlinghouse and Chris Larsen’s lawyers believe that the Coinschedule settlement proves that any charging of defendants would be “legally untenable.”

John Deaton, an attorney familiar with the Ripple case, added that if the two SEC Commissioners admit that there is considerable confusion in the market in 2021 over which digital assets are considered to be securities, he questions how the regulator could prove that the executives knew that XRP was a security back in 2013. 

XRP price takes a blow after death cross emergence

XRP price continues to tread in deep waters as Ripple is unable to reverse the period of underperformance. The cross-border remittance token has broken below a critical level after facing the death cross, opening up the possibility of further decline. 

XRP price is nearing crucial support, to which Ripple will need to decide whether it will make a recovery or face the risk of a steep drop into unchartered waters. 


XRP/USDT daily chart

Slicing below the lower boundary of the declining parallel channel has already spelled trouble for XRP price, but Ripple must hold above $0.50 for any hope for the bulls.

Should XRP price lose the $0.50 level, the lower boundary of the demand barrier, Ripple risks a sharper free fall into the March lows of $0.41.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely

Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely

Bitcoin is trading above $67,000 on Sunday after securing support at $65,000. While BTC holds its gains steady, analysts evaluate the price trend of the largest asset by market capitalization and predict a deeper correction in Bitcoin. 

More Bitcoin News

AI tokens could really ahead of Nvidia earnings

AI tokens could really ahead of Nvidia earnings

Amidst other narratives, AI tokens could gather momentum with the upcoming earnings result of NVIDIA next week. The $2.3 trillion company’s stock emerged as a poster child for the crypto AI sector and gains in the stock catalyzed a rally in cryptocurrency tokens. 

More Cryptocurrencies News

Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback

Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback

Lookonchain identified a large wallet investor who rotated capital from Solana based meme coin Dogwifhat to Doland Tremp and Bonk. The two meme coins have added double-digit value to their prices in the past 24 hours, as seen on CoinGecko. 

More Solana News

Crypto political donations surge to $94 million pre election, exceed previous elections by 13%

Crypto political donations surge to $94 million pre election, exceed previous elections by 13%

Crypto industry giants supported political campaigns in the US looking for pro-crypto governance in the US. A Bloomberg report from May 17 shows that crypto donors have spent $94 million in an effort to get pro-crypto regulation in the US. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in. 

Read full analysis