SEC v. Ripple battle rages as regulation by enforcement continues
- SEC claims that nine digital assets involved in insider trading by Coinbase employees are securities.
- The US SEC has accused ten companies of violating securities laws, attempting to regulate by enforcement.
- Ripple price is struggling to recoup its losses; analysts have a bearish outlook on the altcoin.
XRP succumbed to developments in the SEC v. Ripple case and the crypto ecosystem, dropping to $0.36. The SEC has filed a complaint accusing ten companies of violating securities laws in its tactic of regulation by enforcement.
Also read: Ripple officially confirms end of Jed McCaleb’s XRP dumping spree
SEC’s regulation by enforcement tactics hit ten crypto companies
The SEC filed a complaint against ten companies violating the securities laws, including nine digital asset issuers and a crypto exchange. Jake Chervinsky, Head of Policy at Blockchain Association, commented on the situation and condemned the defendants’ alleged conduct and the SEC’s unjust tactics in accusing the firms.
21/ It’s sad but not surprising to see the SEC continue its unfair attacks on crypto.
— Jake Chervinsky (@jchervinsky) July 22, 2022
As I said, we knew the SEC planned to ramp up enforcement this year, so I assume this is only the beginning.
I hope their next move won't be so unfair & unjust.
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The SEC moved to set a crypto industry-wide precedent through an insider trading case and established jurisdiction stating that the nine digital assets in question were unregistered securities. It's important to note that the SEC has never addressed these cryptocurrencies before. The regulator argues that these assets qualify as securities for the first time in a federal complaint rather than guidance or rule-making. These assets are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM.
The regulator has adopted the regulation by enforcement policy for crypto assets. Therefore, Chervinsky argues that it is not uncommon to learn that an enforcement agency has identified a violation when a complaint is filed.
Chervinsky believes that not just the payment giant Ripple but these ten companies are at trial too.
SEC v. Ripple case update
There was a flurry of activity in the SEC v. Ripple case, with both parties filing motions in response to the SEC’s request to file an appeal against the Hinman ruling. Ripple objected to the SEC’s request for a 30-page opening brief and 10-page reply brief on the Hinman ruling.
James K Filan, defense attorney, informed the Ripple community:
In connection with the SEC’s Objection to Judge Netburn’s Ruling on the Hinman Speech documents, the SEC’s motion to file a 30-page opening brief was denied (limited to 20 pages), but its request to file a 10-page reply brief was granted.
Analysts reveal bearish outlook on XRP price
Analysts at FXStreet evaluated the XRP price chart and predicted a decline in the altcoin. Analysts have a bearish outlook on XRP, believing the asset could struggle to recoup its losses. XRP price could plummet to the $0.31 level in the current downtrend. For price levels and critical information on where XRP is headed, check the video below:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
