SEC made a new statement against Ripple.
The U.S. Securities and Exchange Commission (SEC) continues to hit Ripple ‘s defense hard. Although the SEC’s security lawsuit filed in December 2020 initially in favor of Ripple, things are now completely in favor of the SEC.
Water Boils in SEC and Ripple Case
The basis of Ripple’s defense in the case is that the SEC did not report it despite launching an investigation and did not give Ripple a fair defense. Although Ripple has positioned its entire strategy on this defense, the SEC has recently begun taking important steps to refute this.
The biggest weapon of the SEC in this regard is the advisory services Ripple receives. Stating that Ripple received services from many consulting companies, especially in the first years when it launched XRP, SEC lawyers claim that the company is aware of the risky situation of XRP . The SEC, which requested the court to share this advisory information, dealt a major blow to Ripple with this development.
SEC Reveals Precedent Decisions
The SEC has now stressed that previous precedent decisions actually constituted a warning for Ripple. While the SEC’s lawsuit against Ripple is the biggest legal incident the cryptocurrency industry has ever seen, the SEC’s knife has the blood of other companies. The SEC has sued more than 70 cryptocurrency companies to date and has won almost all of them.
SEC lawyers also stressed that the previous 70 securities cases were a warning to Ripple in their latest statement to the court. By demanding that the court reject Ripple’s “fair defense denied” plea on this basis, the SEC could win the case if it can get it accepted.
Critical Case for XRP Price
In a statement on May 27, the SEC emphasized that both Ripple and the public are aware that there is a risk that XRP may actually become a security. The SEC filed its first securities lawsuit against cryptocurrency companies in July 2013, and 75 cryptocurrency companies have been sued since then. Ripple was the 74th of these.
The SEC lawyers, who stated that Ripple saw these lawsuits and could take precedents from them, seem to have made a claim this time, which really worries XRP investors.