Ripple vs. SEC: Crypto Mom Calls for Better Regulatory Clarity
June 21, 2021
In a recent interview with Bloomberg, US Securities and Exchange Commissioner Hester Peirce noted that Ripple, or any other cryptocurrency, does not necessarily have to be a security for the issuer to get sued by the Commission.
Pierce, popularly known as the “Crypto Mom” because of her pro-crypto views, argued that enforcement action could mean that the concerned asset trades as an investment contract. She noted that:
“When we think about a crypto-asset as being a security, what we’re doing is we’re saying it’s [sold] as part of an investment contract, which means that [promises are being] made around the sale of this asset. It doesn’t mean that the asset itself necessarily has to be a security. It means that it was [getting]sold as a security.”
However, the Crypto Mom admitted that the SEC needs to develop better regulatory clarity to effectively tackle real offenders.
The SEC took Ripple Labs to court last year together with its founders, Chris Larsen and Brad Garlinghouse, over their XRP sales, which the agency claimed violated federal securities laws.
The defendants have since argued that its sales and distribution of XRP tokens did not fall into the purview of investment contracts, given that XRP holders do not hold stakes in the company. With the current progression, the case could extend well into 2022.
Key Ripple Levels to Watch — June 21
Ripple has come under another selling wave as the broader crypto market sentiment flips overnight, following anti-crypto activities in China. The seventh-largest cryptocurrency is currently trading within a descending channel, as the price etches closer to the May 23 low ($0.6500).
That said, XRP has just hit the channel base, indicating that we could see a rebound to $0.8000 over the coming hours. Nonetheless, the current market bias is heavily bearish, and further declines could occur from the current level, making it significantly risky for buy activities.
Meanwhile, our resistance levels are $0.7500, $0.7800, and $0.8000, and our support levels are $0.7000, $0.6500, and $0.6000.
Total Market Capitalization: $1.38 trillion
Ripple Market Capitalization: $32 billion
Ripple Dominance: 2.3%
Market Rank: #7
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