• 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

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.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

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