Ripple does not stand a chance against SEC, affirms former securities regulator


  • 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.

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:

 


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


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP