As the legal tussle between Ripple Labs and the SEC heats up, the crypto industry is eagerly watching every move.
In the latest update, Ripple’s legal team has filed a compelling response to the SEC’s letter of supplemental authority. The SEC cited a Massachusetts court decision in SEC v. Commonwealth Equity Servs., LLC, which found the defendant guilty of violating negligence-based provisions of the Investment Advisers Act of 1940.
However, Ripple’s legal team is not backing down, arguing that the case supports their position, emphasizing the importance of fair notice in legal proceedings. This battle is shaping up to be a defining moment for the crypto industry, as regulators seek to bring these markets in line with traditional financial systems.
Ripple’s legal team argues that the Commonwealth case supports their position, emphasizing the importance of fair notice in legal proceedings. They maintain that the SEC’s reliance on the Howey test and its progeny as a source of fair notice is insufficient in this case.
Related: Pro-XRP Lawyer Explains How Gary Gensler May Face Troubles if Judge Rules Against Ripple – Coinpedia Fintech News
Impact on the crypto industry
The legal battle between Ripple Labs and the SEC has significant implications for the broader cryptocurrency market and the regulatory landscape for digital assets. As of April 2023, Ripple (XRP) is the seventh-largest cryptocurrency by market capitalization, with a market cap of over $60 billion. The SEC’s ongoing case against Ripple has caused significant volatility in the XRP market.
Tony Edward, the host of ThinkCrypto, tweeted that a ruling in favor of Ripple in the ongoing SEC vs. Ripple lawsuit would be great for the cryptocurrency XRP. He believes that if Judge Torres provides a ruling in the next few days, it would allow XRP to catch the bullish momentum and pump.
The outcome of the case could have significant implications for the broader cryptocurrency market, particularly with regard to the classification of digital assets as securities. The case will also have implications for the regulatory landscape for digital assets, as regulators seek to bring these markets in line with traditional financial systems.
Are you rooting for Ripple or the SEC?
