- The US Securities and Exchange Commission filed a letter of supplemental authority to support its motion against Ripple.
- The financial regulator seeks to provide additional legal precedents boosting its likelihood of a win against the payment giant.
- SEC argues Ripple was given “fair notice,” XRP price wipes out recent gains in response to the filing.
The US financial regulator, Securities and Exchange Commission’s (SEC) lawsuit against Ripple has dragged on for over two years. Interestingly, in a new development, the US SEC has filed a letter to support its stance against Ripple, this could ensure the regulator’s win against the payment giant.
Also read: Ethereum Shanghai upgrade to increase selling pressure on ETH to this extent
SEC v. Ripple lawsuit upgrade: US financial regulator’s latest filing
In a new update in the SEC v. Ripple lawsuit, the regulator has filed a letter of supplemental authority to support its case against the cross-border remittance firm. James Filan, former federal prosecutor shared the filing in a recent tweet:
#XRPCommunity #SECGov v. #Ripple #XRP SEC files Letter of Supplemental Authority in further Support of its Motion for Summary Judgment. https://t.co/rdzW3Q6SIT
— James K. Filan (@FilanLaw) April 11, 2023
The filing strengthens the SEC’s argument that Ripple was given “fair notice” and addresses the defense of the payment giant. The US financial regulator’s additional legal precedent is a case against the Commonwealth Equity Services LLC where the judge granted the SEC’s motion for summary judgment and denied a cross-motion.
The agency believes this legal precedent supports the SEC’s case against Ripple.
The new legal precedent renders Ripple’s fair notice defense inapplicable
The legal precedent from 2019 when the SEC filed a case against Commonwealth Equity Services LLC and CEO John Rooney addresses their alleged violation of federal securities laws. The SEC landed a win in the case against the firm and considers this adequate to address Ripple’s argument of a “lack of a fair notice.”
XRP price nosedived in response to the update. XRP yielded nearly 4% losses for holders overnight. The recent development strengthens the SEC’s case against the remittance firm, fueling a bearish sentiment among XRP holders.
The altcoin wiped its gains from the past two weeks and is currently exchanging hands at $0.50.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Week Ahead: Altcoin plays for traders as Bitcoin crosses $42,000
Bitcoin price hit $40,000 over the weekend as investors anticipate a spot BTC ETF approval in January. Bitcoin trades around $42,000 and shows no signs of stopping. This article will focus on what to expect this week and the outlook for BTC and if the fourth cycle is any different.
Crypto exchanges serving Indian residents to comply with Anti-Money Laundering guidelines: Indian Parliament
Crypto exchanges serving Indian residents to face action if not compliant with Anti-Money Laundering and Countering of Financial Terrorism guidelines.The process of registering offshore exchanges, Virtual Digital Asset service providers has been initiated.
Dogecoin breaks key $0.088 barrier ahead of tenth birthday, 87% DOGE holders at profit
As Dogecoin (DOGE) approaches its tenth anniversary on Wednesday, the Shiba-Inu-themed meme cryptocurrency has surpassed a crucial resistance level at $0.088076, reaching the highest level since mid-April.
Bitcoin price could rally to $45,000 ahead of BTC halving event in April 2024
Bitcoin price crossed the $41,000 mark on Binance, in its ongoing uptrend. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. There are more catalysts driving BTC price gains in the current cycle.
Analyzing potential $30k corrections ahead of BTC ETF approval
Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.