XRP price falls following the rejection of Ripple’s appeal for less settlement money by the US SEC, disregarding the Binance case as irrelevant.
As Ripple’s legal dispute with the Securities and Exchange Commission (SEC) approaches its conclusion, the value of its native token, XRP, has experienced a substantial decline. XRP has experienced a significant decrease of 6.7% in the past 24 hours and is currently trading at approximately $0.43. It is crucial to acknowledge that the token has experienced an 88% decline from its all-time high of $3.84, achieved approximately seven years ago.
The SEC has recently filed a response to Ripple’s most recent legal arguments, which reference the SEC vs. Binance case. This decline occurs at a critical juncture. Ripple intended to use this case to defend itself by criticizing the SEC’s “regulation-by-enforcement” approach. It asserts that the regulatory agency needs to provide clarity on cryptocurrency regulation.
Most Recent Advancements
Defense attorney James Filan recently disclosed a court filing regarding X in which the Securities and Exchange Commission (SEC) refuted Ripple’s assertions—the SEC dismissed Ripple’s reference to the Binance case as irrelevant. The SEC accused Ripple of selectively citing the ruling to downplay its errors and argue against severe penalties.
The SEC also declined to engage in discussions regarding the programmatic sales of XRP and the secondary market transactions of Binance Coin. It maintained that these arguments were not relevant to the Ripple case.
The fair notice doctrine, which posits that individuals must be adequately informed of any legal claims made against them, is a central point in the legal battle—the SEC contended that the crypto industry had been aware of regulatory expectations since the 2017 DAO report, which preceded numerous Ripple XRP sales.
Additionally, the regulator disclosed that Ripple had procured legal counsel regarding prospective regulatory complications associated with its sales. This implies that the organization was aware of potential violations. According to the Securities and Exchange Commission (SEC
“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.”
Ripple has argued for a sanction of no more than $10 million in its defense, while the SEC has suggested a penalty of $2 billion.
Ripple’s Confidence
The cryptocurrency community has taken note of the ongoing legal scrutiny. In May, Jason Pizzino, a renowned crypto analyst, warned investors about Ripple, asserting that it possessed the lowest returns and the highest risk among the top 11 altcoins.
Nevertheless, despite these obstacles, XRP remains the seventh-largest cryptocurrency by market cap, with a market valuation of $25.2 billion.
Furthermore, Ripple persists in its efforts to innovate and broaden its product line. The company announced the launch of Ripple USD (RLUSD) on June 12, a stablecoin supported by the US dollar at a 1:1 ratio. This new stablecoin aims to enhance transparency and stability by operating on both the XRP Ledger and Ethereum. The launch is anticipated to occur later this year.
