SEC vs. Ripple: A Clash of Titans
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NAIROBI (CoinChapter.com) – The ongoing court battle between the US Securities and Exchange Commission (SEC) and Ripple Labs Inc. has taken a new turn. In response to Ripple’s attempt to use a recent Binance ruling in its favor, the SEC has filed a counterclaim, asserting that the ruling has no bearing on their case against Ripple.
Ripple had hoped that the ruling, which dismissed the SEC’s allegations against Binance Coin (BNB), would sway the court’s decision regarding the potential $2 billion penalty against them.
Defense lawyer James Filan revealed in a recent post that the SEC has responded to Ripple’s Notice of Supplemental Authority. Ripple had argued that the Binance ruling should be applied to XRP, as it has implications for the Howey Test used in their case with the SEC. However, the SEC dismissed this argument, stating that it was irrelevant to the pending motion on remedies.
The SEC’s response focused instead on the fair notice doctrine, claiming that Ripple was well aware of potential legal issues. The SEC pointed out that Ripple had been notified of these issues through a report published in 2017. The fair notice doctrine ensures that individuals are informed about potential legal actions against them.
While the SEC avoided discussing the trading of BNB on secondary markets and Ripple’s programmatic sales of XRP, it emphasized Ripple’s awareness of the regulatory environment. This is significant, as Judge Amy Berman Jackson, who is presiding over the Binance case, has previously indicated a potential disagreement with the SEC’s regulatory approach in reference to Ripple’s programmatic sales of XRP.
Investors are eagerly awaiting a final court decision on the Ripple case, which has been ongoing for nearly four years. Some members of the XRP community believe that a settlement may be on the horizon.
The outcome of the SEC’s case against Coinbase could also have an impact on Ripple’s situation. Coinbase is currently appealing a court decision that labeled it an unregistered securities exchange. If Coinbase receives a favorable ruling, it could influence the outcome of the SEC vs. Ripple case and have broader implications for the crypto market.
Amidst the legal battle, XRP has shown signs of potential recovery. Despite recent sideways trading, XRP has experienced an 8.34% increase in the past 24 hours, although it remains down by 9.18% over the last week.
Recent data indicates that XRP reached a low of $0.41 after a 14% drawdown, losing its support at $0.45. However, the Relative Strength Index (RSI) entering the oversold zone suggests that the bearish momentum may be nearing its peak. Typically, oversold conditions precede recoveries as selling pressure diminishes.
XRP has been in a downward trend since March 11, hitting its lowest level in fifteen months at $0.38. If the decline continues, XRP may find support at the low of $0.37 from March 21, 2023.
On the other hand, a daily candlestick close above $0.4611 could negate the bearish outlook and propel XRP towards the next significant resistance level at $0.50.
Analysts remain optimistic about XRP’s future prospects. Dark Defender, an independent crypto analyst, highlights the importance of the $0.3917 support level, also known as the Point of Control (POC), on the 1-month XRP/USD chart. This level, representing the price where most trades have occurred since 2014, serves as a historical foundation for the price. The recent touch of this level suggests a critical testing ground where bullish sentiments could stabilize and reverse the downtrend.