Coinspeaker XRP Price Drops as SEC Dismisses Ripple’s Arguments
As Ripple’s legal fight with the Securities and Exchange Commission (SEC) nears its final stages, the value of its native token, XRP, has taken a major hit. Over the past 24 hours, XRP has seen a sharp decline of 6.7%, currently trading around $0.43. It is important to note that the token is down by 88% from its all-time high of $3.84, reached about seven years ago.
This downturn comes at a critical point as the SEC recently filed a response to Ripple’s latest legal arguments, referencing the SEC vs. Binance case. Ripple had hoped to use this case in its own defense, criticizing the SEC’s “regulation-by-enforcement” strategy. It states that the regulatory agency fails to deliver clarity on crypto regulation.
Latest Developments
Defense attorney James Filan recently shared a court filing on X where the SEC countered Ripple’s statements. The SEC dismissed Ripple’s reference to the Binance case as irrelevant, accusing Ripple of selectively citing the ruling to downplay its mistakes and argue against severe penalties.
The SEC also dismissed discussions on the secondary market transactions of Binance Coin and the programmatic sales of XRP. It maintained that these points did not pertain to the Ripple case.
A main point in the legal battle is the fair notice doctrine, which asserts that individuals must be sufficiently informed of any legal claims against them. The SEC argued that the crypto industry had been aware of regulatory expectations since the 2017 DAO report, which preceded many of Ripple’s XRP sales.
Moreover, the regulator stated that Ripple had received legal advice regarding potential regulatory issues with its sales. This suggests that the company was aware of possible violations. The SEC states:
“The Binance court also found that, while the fair notice defense is an objective inquiry, it was “notable” that the defendants were alleged to have actual notice that the SEC could pursue them, just like Ripple here had specific notice about the risks of its actions and chose to proceed anyway.”
In its defense, Ripple has argued for a penalty not exceeding $10 million, while the SEC has proposed a $2 billion penalty.
Ripple’s Confidence
The ongoing legal scrutiny has not gone unnoticed in the crypto community. In May, renowned crypto analyst Jason Pizzino warned investors about Ripple, predicting that it offered the lowest returns with the highest risk among the top 11 altcoins.
Despite these challenges, XRP maintains a market cap of $25.2 billion, positioning it as the seventh-largest cryptocurrency by market cap.
Moreover, Ripple continues to innovate and expand its offerings. On June 12, the company announced the launch of Ripple USD (RLUSD), a stablecoin backed 1:1 by the US dollar. This new stablecoin aims to provide greater transparency and stability, operating on both the XRP Ledger and Ethereum. The launch is scheduled for later this year.
next
XRP Price Drops as SEC Dismisses Ripple’s Arguments