XRP spikes 4% following Ripple’s latest response to SEC
XRP has outperformed Bitcoin and Ethereum by more than 20% in the last 30 days, according to CryptoSlate data.
Ripple XRP grew 4% in the last 24 hours to as high as $0.53475 at the time of writing, according to CryptoSlate data.
The surge in price follows Ripple’s response to the U.S. Securities and Exchange Commission’s (SEC) letter of supplemental authority regarding its motion for summary judgment.
An April 13 letter by Ripple’s lawyer Michael K. Kellogg countered that the SEC’s Commonwealth case argument does not apply to the legal battle between the crypto firm and the financial regulator.
The SEC previously wrote that its enforcement action against the investment firm Commonwealth Equity Services provides an additional authority for the court to reject Ripple’s fair notice defense claims.
Kellogg said the Commonwealth case was “an out-of-circuit, unpublished district court opinion.” The Ripple lawyer further argued that the case lacked contemporaneous evidence to support its defense.
Kellogg noted that “reasonable market participants, trying to understand what the SEC would permit or prohibit, concluded that Defendants’ offers and sales of XRP were not ‘investment contracts,’ and told the SEC so.”
“There is also abundant evidence that the SEC was not only aware of the widespread regulatory confusion but helped to sow it by repeatedly offering (and then disclaiming) vague guidance that differed from the Howey test.”
The Ripple lawyer concluded that the SEC’s argument that it had an “unbroken chain of district court decisions rejecting fair notice defenses” were irrelevant to its case as “The Court has already rejected” the regulator’s reliance on them.
Earlier in the week, a pro-XRP lawyer Jeremy Hogan highlighted why the SEC’s classification of XRP was wrong. Hogan argued that the token doesn’t fit into the “investment contract” category espoused by the financial regulator.