- Former SEC Chief Robert Cohen drew parallels between the Commission’s case against Ripple with Blockvest LLC, tackled by the regulator in 2019.
- Cohen reveals that after losing the preliminary injunction, the Commission filed for a reconsideration and the judge reversed the decision in favor of the SEC.
- Analysts believe Ripple price could witness a bullish trend reversal, pushing XRP to $0.50 level.
Former Chief Robert Cohen believes the Securities & Exchange Commission's (SEC) ’s case against payment giant Ripple is key, however the outcome may not be as significant. The regulator is likely to file a motion for reconsideration on losing the case against Ripple.
SEC vs. Ripple lawsuit could drag beyond the outcome of the case
Robert Cohen is the former SEC Chief of the Division of Enforcement. Cohen responded to a question about the implication of the commission’s loss to Ripple in an interview. Cohen drew parallels between a fraud case filed by the commission against Blockvest LLC and the ongoing lawsuit against Ripple.
The SEC had suffered a rare defeat in SEC v. Blockvest, LLC on November 27, 2018, when Judge Curiel of the US District Court for the Southern District of California issued a denial of its motion for a preliminary injunction against the firm.
Despite evidence of fraudulent representations of the SEC in the defendant’s website postings, the court denied the motion of preliminary injunction filed by the US regulator. This did not last long and attracted intense scrutiny from the industry. On December 17, 2018, the SEC moved for partial reconsideration of the November order.
On February 14, 2019, the court granted, in part, the SEC’s motion for reconsideration relying on new evidence and an argument that the court apparently had overlooked. Therefore, the SEC shrugged off its original loss and continued to seek to shut down the alleged fraud with all the power of the federal securities laws.
Ex-SEC Chief of the Division of Enforcement Robert Cohen responds to a question about the implications of the #SEC losing to #RIPPLE @JohnEDeaton1 @DigPerspectives @digitalassetbuy @MarketsMickle @XRPNews_ @WorkingMoneyCH pic.twitter.com/enOyQdV7w2
— wEeZiE {X} (@NerdNationUnbox) July 2, 2022
Cohen believes that if the SEC loses the case to Ripple, it could have a problematic impact with the amount of attention the lawsuit has garnered from media and the industry. However, the Commission has a clean track record of using the full force of federal securities laws to right the wrongs of district court rulings made by a judge.
It is, therefore, clear that a win in the SEC vs. Ripple lawsuit is not the end of the road for the payments giant, and the regulator is likely to pursue the defendant until a favorable outcome for the Commission has been achieved.
Ripple price prepares for a rally
Analysts at InsideBitcoins have evaluated the Ripple price trend and identified key resistance and support levels for the altcoin. Key resistances for XRP are $0.50, $0.55 and $0.60, and the support level for Ripple is at $0.20. Ripple's bullish target is $0.50 in continuation of its uptrend. FXStreet analysts identified a price point to enter a long trade on the altcoin. For more information, watch this video:
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