Ripple (XRP) has fired back at the U.S. Securities and Exchange Commission (SEC) with a strongly-worded letter in response to the regulatory body’s “supplemental authority” letter. Ripple’s lawyer, Michael K. Kellogg, wrote the letter dated April 13, refuting the SEC’s claims that the enforcement action it took against the Commonwealth Equity Services investment company somehow applies to the ongoing Ripple vs SEC case.
Kellogg also claimed that the SEC was fully aware of the confusion and misunderstanding surrounding regulation and even contributed to creating regulatory confusion by putting forward, and later disclaiming, very vague guidance that didn’t align with the Howey test. Ripple’s response letter comes in the midst of an ongoing legal battle with the SEC over allegations that Ripple sold unregistered securities in the form of XRP.
The SEC’s “supplemental authority” letter cited the enforcement move against Commonwealth Equity Services as giving the court extra authority on informing the fair notice defense claims by Ripple. However, Ripple’s lawyer strongly objects to this, stating that the claims made by the SEC do not connect to the ongoing Ripple vs SEC case.
XRP bulls are now wide awake after Ripple’s response to the SEC’s letter. The altcoin has outperformed its counterparts, with prices skyrocketing by 4% in the last 24 hours after the letter was published. This surge in prices follows Ripple’s noteworthy performance over the past 30 days, which has unseated Bitcoin and Ethereum by over 20%.
Despite the recent gains in price, Ripple (XRP) is currently down by 0.17% and 0.65% within the last hour and 24 hours, respectively. At the time of this report, Ripple (XRP) trades at $0.51.
As the legal battle between Ripple and the SEC continues, XRP supporters continue to hope for a favorable outcome for Ripple. The issue has caused regulatory uncertainty in the crypto market, with many investors worried about potential regulatory action against other cryptocurrencies in the future.
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