Ripple Vs. SEC Update: XRP Facing Challenges For Recovery Amid Lingering Ripple Lawsuit, Warns Former SEC Litigator
On Thursday, Ripple (XRP) struggles to surpass its crucial $0.50 threshold yet again, marking the fourth consecutive day of unsuccessful attempts to breach and sustain resistance.
XRP’s performance over the past week has been experiencing a roughly 20% decline amidst a broader correction in the crypto market. Moreover, ongoing discussions among market participants revolve around the ongoing legal battle between Ripple and the SEC.
Former SEC Litigator Ladan Stewart stated on Wednesday that Ripple could be headed for a showdown with the US financial regulator in the Supreme Court.
Stewart outlined the SEC’s position, highlighting that Ripple does not classify tokens as securities, but rather focuses on their sales and offerings. Her perspective has ignited discussions within both the crypto and legal circles regarding the practical consequences of this stance.
As per the discussion, blockchain lawyers raised doubts about the practicality of the SEC’s strategy, “But then what do you register?” asked Lawyer Rebecca Rettig. Stewart responded that the token, plus “all the stuff around the token,” is the security. “You can’t register all the stuff, but you can register the token.”
Meanwhile, Bill Morgan voiced criticism of the SEC’s rationale, stating “The token represents the security. The SEC’s ideal outcome is a court accepts its theory that because the token has allegedly no inherent value that any sale must be an investment contract.”
Despite these regulatory challenges, Ripple is gearing up for its forthcoming legal battle. Stuart Alderoty outlined the upcoming deadlines, indicating that Ripple with address the SEC’s penalty requests on April 22. The SEC, on the other hand, is expected to respond on May 6. This timeline signifies crucial steps in a case with profound legal implications and significant market impacts.
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