While the price of XRP currently stands at $0.5578, showing stability and even modest gains of 6.2 %, the cryptocurrency’s legal battle with the U.S. Securities and Exchange Commission (SEC) has unveiled intriguing details. The coin’s upward momentum is backed by positive on-chain metrics. However, there is a chance of a price correction, and if XRP falls to the support level at $0.50, it might experience a significant decline.
The letters Unfold the Long Tail in Short
It has come to light that Joseph Grundfest, a former SEC commissioner who currently serves as a professor at Stanford Law School, vehemently opposed the SEC’s lawsuit against Ripple, citing its far-reaching implications.
In a letter penned in December 2020, Grundfest expressed concerns that the lawsuit could have detrimental consequences for the nation’s financial and securities markets. He cautioned that the case wasn’t just about the technicalities of securities law but would also inflict harm on innocent XRP holders.
His argument was that the fear of legal repercussions would lead intermediaries to cease XRP transactions, which, in turn, would reduce liquidity and cause a decline in XRP’s value, resulting in billions of dollars in losses for third-party holders.
“Upon learning of the proceeding, intermediaries will cease transacting in XRP because of the associated legal risk. The resulting reduction in liquidity will cause XRP’s value to decline.”
ETH Got the Free Pass?
But some got the free pass like ETH from the SEC; Grundfest also questioned the SEC’s inconsistency in treating Ethereum (ETH) and XRP. He argued that the SEC hadn’t presented any substantial differences in the operations of Ether and XRP concerning federal securities laws. This led him to challenge the fairness of subjecting XRP to securities law obligations while exempting Ether. Grundfest believed this approach created an unfair competitive imbalance in the enforcement of federal securities laws.
This revelation not only adds an interesting twist to the Ripple-SEC lawsuit but also raises pertinent questions about the regulatory approach to different cryptocurrencies. XRP’s price stability amid the ongoing legal battle underscores its resilience and the continued support it receives from its community.
Read More: XRP Lawsuit: Former SEC Commissioner Criticizes Ripple Lawsuit, Questions ETH’s