Against the backdrop of the widely publicized <a href="https://finbold.com/ripple-v-sec-case-update-as-of-april-24-2023/" rel="noopener noreferrer nofollow">legal duel</a> between the United States Securities and Exchange Commission (<a href="https://finbold.com/topic/sec/" rel="noopener noreferrer nofollow">SEC</a>) and the <a href="https://finbold.com/topic/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> company <a href="https://finbold.com/topic/ripple/" rel="noopener noreferrer nofollow">Ripple</a>, one of the agency’s own commissioners has publicly denounced its tactics in the <a href="https://finbold.com/category/cryptocurrency-news/" rel="noopener noreferrer nofollow">cryptocurrency sector</a> as a territorial struggle.Indeed, Hester Peirce, who is now well-known for publicly stepping out to criticize the <a href="https://finbold.com/category/regulations-news/" rel="noopener noreferrer nofollow">regulator</a>, has accused it of “regulation by ambiguity” and “jurisdictional maximalization” or launching cases – such as the one against Ripple – for the purpose of growing its mandate, as Wired <a href="https://www.wired.com/story/sec-dissenter-crypto-regulation/" rel="noopener noreferrer nofollow">reported</a> on April 26.<h2 id="header-0">Enforcing instead of guiding</h2>According to the report, Peirce said that “one way to plant a flag is to bring enforcement action. It says: This is our space.” However, the main caveat of this practice, she stresses, is that the SEC has failed to provide proper guidance for <a href="https://finbold.com/guides/cryptocurrency/" rel="noopener noreferrer nofollow">crypto</a> firms to stay compliant, leaving them in the dark instead:<blockquote>“We haven’t done our job as a regulator. We have not provided a road to compliance. (…) [Businesses and consumers] have to be able to know whether they’re dealing with a <a href="https://finbold.com/topic/securities/" rel="noopener noreferrer nofollow">security</a> or not because when they don’t know, they can’t move forward—it paralyzes them.”</blockquote>Furthermore, Peirce argues that such behavior by one of the US’s largest regulatory agencies undermines the country’s aspirations to be a center of <a href="https://finbold.com/category/technology-news/" rel="noopener noreferrer nofollow">technology</a> innovation in <a href="https://finbold.com/guides/finance/" rel="noopener noreferrer nofollow">finance</a> as it is pushing companies away.“It makes me sad because it’s about the capability of a regulator to deal with a new technology and asset class. (…) We’re showing ourselves to be incapable of making any accommodation for experimentation.”<h2 id="header-1">Legal developments</h2>At the same time, a <a href="https://finbold.com/guide/corporate-lawyer-salary/" rel="noopener noreferrer nofollow">legal expert</a> and amicus curiae for the blockchain company, John E. Deaton, shared some of the contents of his Amicus Brief, in which he challenged the SEC to cite a single situation similar to what the agency is trying to prove in the Ripple case:<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/996c437aabbe4916977c889778fc9517.PNG" />In particular, he highlighted that “when an asset is offered and sold as an <a href="https://finbold.com/guides/investing/" rel="noopener noreferrer nofollow">investment</a> contract, therefore a security, it does not transform the underlying asset itself into a security. [Oranges] remain [oranges], and <a href="https://finbold.com/cryptocurrency/xrp/" rel="noopener noreferrer nofollow">XRP</a> remains digital code.”Meanwhile, the XRP community is waiting for the news on a Zoom hearing on class certification in the class action case filed against Ripple in 2020 before a court in the state of California, in which Ripple is accused of selling the <a href="https://finbold.com/guide/how-to-buy-ripple-xrp/" rel="noopener noreferrer nofollow">XRP token</a> as an unregistered security, as <a href="https://twitter.com/FilanLaw/status/1651033385509289987" rel="noopener noreferrer nofollow">announced</a> by defense attorney James K. Filan.As things stand, XRP is currently changing hands at the price of $0.46, losing 2.22% on the day after seeing a sharp drop which saw it move from $0.48 to $0.44, but it looks to be recovering once again, trying to reverse the losses of 6.05% in the last week and 4.01% across the month, according to the latest data on April 27.Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/?utm_source&#61;CMC&amp;utm_medium&#61;social&amp;utm_campaign&#61;CMC&amp;utm_content&#61;short" rel="noopener noreferrer nofollow">Finbold.com</a>.

Ripple v. SEC case update as of April 27, 2023

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Finbold

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