SEC has lost as many as 5 out of 6 cases in the midst of the lawsuit with Ripple ongoing

It has come to the public’s attention that the Securities and Exchange Commission (SEC) has lost as many as five out of its most recent cases before the Supreme Court, indicating hope for the cryptocurrency community as the legal battle between Ripple and the SEC continues.

According to the tweet sent on April 14 by the blockchain company’s general counsel, Stuart Alderoty, the most recent of its lost cases before the Supreme Court is the SEC v. Michelle Cochran, in which the regulatory body had accused a certified public accountant from Texas of allegedly failing to adhere to federal auditing standards.

On April 16, lawyer John E. Deaton shared a video from 2018 in which US investor Tim Draper informed none other than Gary Gensler that the banks were in a panic over the cryptocurrency market and that there would be lawsuits, media pressure, and influence over financial regulators to prevent its growth. Deaton represents more than 76,000 XRP owners in the ongoing lawsuit.

Alderoty also shared an update referring to the stern letter to Gensler regarding the request for records relating to the arrest of Sam Bankman-Fried, written by the US House of Representatives Financial Services Committee Chair Patrick McHenry and the chair of the Oversight and Investigations Subcommittee, Bill Huizenga. This was about Ripple’s struggles with obtaining documents from the SEC.

In particular, Bankman-Fried was supposed to appear before the Financial Services Committee on December 13 but was prohibited from doing so due to his detention. The Committee had already written to Gensler on February 10 regarding this. Yet instead of promptly providing the necessary information, the SEC offered unrelated documents.

In a supplemental authority letter submitted on April 12 to support the SEC’s request for summary judgment, the SEC’s legal counsel cited a Massachusetts court’s ruling rejecting the defendant’s claim of “fair notice” and siding with the regulator in a case involving securities fraud.

In response, Ripple’s lawyer Michael K. Kellogg argued that the proceedings from the case to which the SEC was referring were “an out-of-circuit, unpublished district court opinion” and irrelevant, as Ripple had “abundant evidence (…) showing that reasonable market participants, trying to understand what the SEC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.”


XRP/USD 4-hour chart | Source: TradingView

The XRP price, which enjoyed an $8.8 billion boost to its market cap in just 30 days, is $0.5134. According to the most recent information received on April 17, this implies a reduction of 2% on the day but a gain of 2% over the previous seven days and a rise of 34% on its monthly chart.

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