XRP News Today: Ripple Cites SEC Inconsistency in Latest Legal Filing

The Thursday Overview

On Thursday (June 13), XRP declined by 3.01%. Reversing a 2.50% gain from Wednesday (June 12), XRP ended the session at $0.4773.

Ripple Files Notice of Supplemental Authority

SEC v Ripple case-related updates attracted investor attention on Thursday. Defense attorney James Filan shared the latest court filing in the SEC vs. Ripple saga.

On Thursday, Ripple filed a Notice of Supplemental Authority regarding the TerraForm Labs Consent Judgment.

Ripple referred to the SEC vs. Terraform Labs court ruling whereby the SEC pushed Terraform Labs to pay $3,586,875,882 in disgorgement and a civil penalty of $420,000,000.

The filing highlighted that the civil penalty accounted for about 1.27% of the defendants’ $33 billion gross sales, contrasting with the ‘unreasonableness of the civil penalty’ sought in the Ripple case. Ripple stated that, in similar cases, the SEC agreed to civil penalties between 0.6% and 1.8% of the defendant’s gross revenues.

The court filing added that the SEC seeks a civil penalty far greater than the 0.6% to 1.8% range despite no allegations of fraud. Unlike the Terraform Lab case, XRP institutional investors did not suffer substantial losses.

Ripple swiftly filed the Notice of Supplemental Authority, supporting its argument for a $10 million penalty for breaching US securities laws.

On Thursday, the SEC announced that Terraform Labs and Do Kwon agreed to pay more than $4.5 billion after the court ruling.

Copy and Pasting the SEC Playbook

Ripple took a leaf out of the SEC’s playbook. In January, the SEC referred to an SEC vs. Terraform Labs ruling in a letter to Judge Katherine Failla. The SEC argued the Terraform Labs ruling supported the SEC opposition to the Coinbase (COIN) Motion to Dismiss (MTD).

Coinbase took a page out of the SEC playbook in April, filing a Motion for Interlocutory Appeal. In 2023, the SEC filed a Motion for Interlocutory Appeal in the SEC vs. Ripple case to overturn the Programmatic Sales of XRP ruling.

In October 2023, Judge Analisa Torres rejected the SEC Motion for Interlocutory Appeal, forcing the SEC to wait until the end of the Ripple case to file an appeal.

SEC plans to appeal against the Programmatic Sales of XRP remain an XRP headwind.

XRP Price Action

Daily Chart

XRP remained comfortably below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the $0.48 handle would support a move to the trend lines. A breakout from the trend lines could give the bulls a run at the 50-day EMA.

SEC vs. crypto case-related updates require investor attention.

Conversely, an XRP break below the $0.4750 handle could give the bears a run at the $0.45 handle.

The 14-day RSI reading, 35.57, suggests an XRP break below $0.47 before entering oversold territory.