A Forbes contributor has stated that US Securities and Exchange Commission (SEC) went overboard in its crackdown on Ripple. This statement follows the release of undisclosed documents and past contradictions that could impact the SEC vs. Ripple case result.
SEC Took Much Against XRP On Its Case With Ripple
A prominent contributor at Forbes, Sam Lyman, took to Twitter to share an analysis regarding the ongoing SEC vs. Ripple lawsuit.
Lyman stated that the regulator had bitten more than it could chew in its campaign against blockchain firm Ripple. According to him, SEC Chair Gary Gensler alleged that the crypto sector lacks regulatory compliance and clarity. But it seems like the table has turned against the SEC.
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The agency’s previous statements and internal documents unexpectedly challenge the regulator’s moves in classifying digital assets as securities and pushing them under securities laws.
Lyman pointed out the contradictions and conflicts between the SEC’s past statements, operations, and present positions, and that’s why the SEC moved to seal the Hilman documents in its case with Ripple. However, federal Judge Torres ruled that the SEC’s statements and documents should be publicly available.
Notably, the documents contain the Hinman speech, which the judge stated could be judicial documents. This implies the judge’s final ruling in the lawsuit could depend on the documents.
The recent Judge Torres’ ruling could change how the SEC moves regarding Ripple and the entire crypto industry going forward. Many people now see it as a remarkable pathway for Ripple’s victory, which will liberate the entire crypto industry.
On his part, pro-XRP attorney John Deaton highlighted that the current position of the SEC in the case goes beyond enforcement. In his post, Deaton reiterated that the SEC’s focus on the lawsuit wasn’t just about enforcing US securities laws.
If it were, the SEC would have limited the case to Ripple’s specific sales of its asset, XRP. There would have been a quick settlement, and the case closed long before now. However, the SEC used the lawsuit as a weapon to a bad motive.
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XRP Price Action
The price trend for XRP has seen a downward push over the past week. Following the Judge’s ruling on May 16, XRP’s price rose from its opening value of $0.4284 to close at $0.4481, showing a surge of 3%.
At the time of writing, XRP is trading at $0.4621, showing a drop of 0.85% over the past 24 hours. Its market cap is $23.99 billion, and the 24-hour trading volume is 832 million. However, the 7-day price action for XRP indicates an over 8% increase.
Featured image from Pixabay and chart from Tradingview.com