Regulation
XRP Lawyer Spotlights Obstacles In Settlement
Pro-XRP lawyer Bill Morgan spotlighted the significant hurdles the U.S. Securities and Exchange Commission (SEC) could pose to a settlement with Ripple. Amid the ongoing Ripple vs SEC legal battle, the regulatory agency is expected to make a slew of appeals to deter the blockchain payments firm’s victory.
Ripple Vs SEC Settlement To Delay
In a post on X, Morgan highlighted the SEC’s pursuit of an injunction to halt Ripple’s On-Demand Liquidity (ODL) sales and its intent to appeal programmatic sales as major obstacles. Morgan stated, “The SEC seeking an injunction that would stop ODL sales and the SEC’s intention to appeal on programmatic sales are bigger obstacles to settlement.”
Moreover, these actions by the SEC indicate a prolongation of the legal dispute between Ripple and the regulatory agency. Morgan’s remarks shed light on the complexities surrounding the ongoing litigation and the challenges faced by both parties in reaching a resolution. In addition, the XRP price is also expected to suffer amid the SEC’s pursuit of barring Ripple’s win.
Furthermore, the operations of Ripple and its subsidiaries could be compromised as ODL sales serve as one of the primary constituents. However, if the Ripple vs SEC case eventually reaches a settlement, XRP supporters believe that the crypto’s price will skyrocket. In addition, Morgan echoed the sentiment and predicted that the XRP price could hit $1 after the settlement, which is currently around $0.50.
Also Read: XRP Price: Whales Accumulating Heaviliy Ahead SEC Filing On April 29
April 29 Deadline Inches Closer
Furthermore, the SEC is expected to reply to Ripple’s motion that opposes the exorbitant penalty levied by the agency. Last week, Magistrate Judge Sarah Netburn issued a new scheduling order. This order concerned Ripple’s plea to dismiss the SEC’s latest expert submissions, which are aimed at pushing the case for remedies and a final judgment.
Judge Netburn granted an extension for the SEC until April 29, 2024, to submit their rebuttal to Ripple’s motion. Subsequently, Ripple will have a three-day window to respond. Amid her recent nomination as District Judge in the Southern District of New York, Judge Netburn continues to preside over the Ripple vs. SEC case. Moreover, her consistent and fair rulings have garnered favor from the crypto community.
Ripple is pushing back against the SEC’s proposed civil penalties in the ongoing legal battle. The blockchain payments company opposes the SEC’s push for hefty civil penalties, suggesting instead a penalty capped at $10 million. Ripple argues that the SEC’s claims are exaggerated and lack substantial evidence.
Furthermore, Ripple has addressed the absence of evidence supporting future violations or reckless behavior in its institutional XRP sales. Hence, the SEC’s response and Ripple’s further counter would serve as focal points in determining whether the Ripple vs SEC case will reach a settlement soon.
Also Read: Charles Hoskinson Spooks XRP Community Again, Here’s Why
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A wave of controversy has erupted in the crypto community as Celsius Network faces backlash for suing users who withdrew funds prior to the company’s bankruptcy. David Schwartz, the Chief Technology Officer of Ripple, has weighed in on the matter. Moreover, he offered insights into why Celsius might have taken such drastic action.
Ripple CTO On Celsius’ Latest Move
According to a user on X, Celsius Network has initiated lawsuits against numerous users in New York courts. The user expressed frustration, stating, “Celsius Network has officially sued me and thousands of innocent users… because we happened to take our money off the platform 90 days before they declared bankruptcy.”
The crux of the issue lies in the concept of “clawback.” Clawback provisions allow bankrupt companies to recover funds withdrawn by users within a certain period before the bankruptcy filing. In this case, the period is 90 days. Hence, Ripple CTO Schwartz emphasized the legitimacy of these actions in specific contexts, particularly regarding “non-existent ‘profits.’”
He stated, “If you withdrew fake ‘profits’ that were never actually earned or generated, then you didn’t withdraw your own money.” A user responded to the Ripple CTO, highlighting the perceived injustice. They wrote, “Clawback attempt for people who had withdrawn within 90 days of filing for BK. Absolutely disgraceful behavior.”
Schwartz tried clarifying the nuances by asking, “Are they just trying to clawback non-existent ‘profits’? Or are they trying to clawback returns of principal?” Further discourse revealed that Celsius is allegedly pursuing the return of both profits and principal amounts withdrawn within the 90-day period. The original poster detailed, “They started off asking for 27% of all principal as a settlement, which came across as a giant scam.”
Schwartz’s stance on such actions is clear: “Usually, in schemes like this, they don’t go after people who withdrew their own principal unless there’s evidence that they had inside information or connections.” Moreover, the lawsuit’s impact on users has been severe.
Also Read: XRP Price Decline To $0.40; Can The Ripple’s New Try It Feature Change That?
The Other Perspective
The original poster mentioned, “They are asking for outrageous sums of money, basically my entire net worth.” This sentiment is echoed by many in the crypto community, who fear the broader implications of such legal actions. Another user questioned, “Why would they let you keep profits off assets they are saying you didn’t have the right to have?”
Replying to the user, the Ripple CTO provided a different perspective this time. He argued that the losses suffered by users are a result of Celsius’ fraudulent activities. He stated, “Why should an innocent party bear the costs of Celsius’ fraud? Why should the victim have to suffer the additional loss of bearing the costs of a free option they never agreed to give anyone?”
The lawsuits have not only financial repercussions but also emotional ones. The original poster described the emotional turmoil caused by the lawsuits and the substantial legal fees incurred. “I have to spend thousands to retain an attorney,” they lamented.
As the crypto community watches closely, prominent figures like Coinbase CEO Brian Armstrong and TRON founder Justin Sun have been called upon to support the affected users. In addition, they also asked for aid from ZachXBT, a renowned crypto sleuth. The outcome of these lawsuits could set a significant precedent for the industry.
Also Read: Ripple CLO Slams US Authority Over Crypto Regulation Approach
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. House will vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121, also known as SAB 121. The bulletin has stirred controversy in the crypto industry. It mandates that firms custodying crypto record customer holdings as liabilities.
House Majority Leader Steve Scalise indicated the vote might occur on Tuesday or Wednesday. Following the veto, the vote is a constitutional obligation. The measure previously passed the House with a 228-182 vote.
Bipartisan Push to Overturn SAB 121 Veto
SAB 121 requires firms holding crypto assets for customers to list these as liabilities. This rule has raised concerns among banks and the crypto industry. They argue it could hinder their ability to safeguard digital assets.
The resolution to overturn SAB 121 has seen bipartisan support. In May, the Senate passed it with a 60-38 vote, including support from Senate Majority Leader Chuck Schumer. However, overturning a veto requires a two-thirds majority in the House and Senate.
From venture capital firm Paradigm, Alexander Grieve noted the challenge but saw potential. “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” He pointed out the previous bipartisan support for the FIT21 crypto market structure bill.
Also Read: Craig Wright Faces $1.9M Legal Bill As London Court Issues Freezing Order
Challenges Mount in Overturning Crypto Rule Veto
Despite bipartisan support, overturning the veto remains challenging. The House needs 290 votes, 60 more than the initial 228 votes in favor. Cody Carbone from the Chamber of Digital Commerce expressed doubts about reaching this threshold.
Carbone emphasized the difficulty of changing 60 members’ minds in a week. He acknowledged the efforts for consumer protection and good governance. However, he believes the attempt to override the veto will ultimately fail.
The crypto industry remains hopeful but realistic about the upcoming vote. They recognize the steep hill to climb to overturn the veto. The focus now is on rallying additional support in the House.
The outcome of the vote has significant implications for the crypto industry. If the veto is overturned, it could ease concerns about banks’ ability to safeguard digital assets. Conversely, if it stands, firms may need help complying with SAB 121.
The crypto industry has been vocal about its concerns. They argue that the rule could stifle innovation and hinder the growth of digital assets. The upcoming vote is crucial for determining the regulatory landscape for crypto.
Supporters of overturning the veto emphasize the importance of flexibility for financial institutions. They argue that SAB 121 imposes undue burdens on firms holding crypto assets. The vote will be a crucial indicator of congressional support for the crypto industry.
Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Starting Monday, July 8th, Kucoin will charge a 7.5% tax on all transactions made by users registered in Nigeria.
- This decision comes from a regulatory update from the Nigerian SEC.
Kucoin exchange took to Twitter (X) to announce that starting Monday, July 8th, Nigerian users will be charged a 7.5% value-added tax on all transactions. This move, spurred by the Nigerian SEC’s regulatory actions, comes a month after the regulator asked all crypto exchanges and businesses to re-register or risk enforcement action.
This levy may be a sign that the Nigerian SEC is at the early stages of recognising cryptocurrencies, three years after the country’s Central Bank ordered banks to stop transacting with cryptos either for themselves or corporate entities.
The Nigerian government has tried to impose a 10% levy on crypto transactions through the 2023 Finance Act but was unable to enforce it due largely to regulatory opacity.
While the SEC Chairman Emomotimi Agama has not commented on the new tax, the regulator admits that this new rule is part of its plan to regulate crypto.
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