Ripple Rejects SECs Settlement Proposal Advocates for Clear Cryptocurrency Regulations
In a recent development that has the cryptocurrency world buzzing, the U.S. Securities and Exchange Commission (SEC) has significantly reduced its penalty demand in the ongoing legal tussle with Ripple. Originally set at an eye-watering $2 billion, the SEC has now proposed a settlement of just $102 million. However, Ripple, standing firm in its convictions, has declined the offer.
Ripple’s stance is a bold challenge to the SEC’s current regulatory strategy for cryptocurrencies. The company argues that the traditional Howey Test, a standard for determining what constitutes a security, is ill-suited for the digital asset space. Ripple’s legal team has gone on the offensive, filing a Notice of Supplemental Authority to bolster their position.
This legal maneuver draws inspiration from Binance’s recent courtroom success. On July 2, 2024, Ripple Labs presented this notice before Judge Analisa Torres, marking a pivotal moment in their defense against the SEC’s proposed sanctions and final judgment.
The crypto community is closely monitoring the hashtag #XRPCommunity, as well as the ongoing battle encapsulated by #SECGov vs. #Ripple #XRP. Ripple’s official Twitter handle, @Ripple, has been active in sharing updates, including the Notice of Supplemental Authority related to the Binance decision.
Ripple’s argument hinges on the need for a formalized rule-making process, as the current case-by-case regulatory method leads to inconsistent and unclear outcomes for industry players. This criticism comes as the SEC prepares its response, which may draw parallels to the SEC vs. Terraform Labs case. There, Judge Rakoff ruled against Terraform Labs and its founder, Do Kwon, for not registering TerraUSD and Luna as securities.
The implications of this lawsuit extend far beyond the courtroom, with potential ripple effects (pun intended) on the price of XRP and the broader crypto market. A victory for Ripple could catalyze a surge in XRP’s value, reminiscent of the uptick following their partial win last year. Conversely, an SEC triumph could spell a downturn for the market.
At present, XRP is experiencing a slight uptick, trading at $0.4792, a modest 0.5% increase, with a market capitalization of $26.68 billion. This is still shy of its recent peak of $0.52, which was influenced by speculation surrounding the approval of an Ethereum ETF.
The question on everyone’s mind is whether XRP’s value will soar or plummet depending on the lawsuit’s outcome. What are your thoughts on the future of XRP? Share your predictions with us!
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Ripple Vs SEC