Did the Security and Exchange Commission know that they were protected by federal statute, even if they do anything wrong? Why is the crypto market going down? And Ripple has scored a major win against the Security and Exchange Commission.
So, Ripple holders were enraged by the Security and Exchange Commission’s action against the digital asset, believing that the regulator had betrayed its mission of protecting consumers by filing a complaint against Ripple Labs for an alleged unregistered sale of securities, which resulted in the delisting of XRP in the United States and a general sense of unease toward the digital asset.
Ripple Labs, one of the world’s most prominent blockchain companies, has also expressed dissatisfaction with the Security and Exchange Commission’s enigmatic behavior at a time when regulatory clarity should have been expected from the financial watchdog that wants to take the lead in the oversight of the new asset class known as blockchain technology.
There is widespread support for Ripple, which has endured seven years of inaction from the Security and Exchange Commission while its cryptocurrency, XRP, was released and subsequently traded in the secondary markets with remarkable success. It is well known that officials from Ripple made several attempts to comprehend the authority’s stance on XRP, but were unsuccessful in their efforts.
Now, more than a year and a half later, the situation has shifted. The Security and Exchange Commission is trying to keep its internal records out of the hands of Ripple and the public, and there has been evidence of a conflict of interest. In light of the fact that this is no longer an ordinary civil dispute, public opinion is rapidly siding with Ripple.
In his opinion, the case is about “unbridled abuse of enforcement power by federal administrative agencies,” according to Frank Francone, policy fellow at the Centennial Institute and a California attorney. He explains that under current federal law, even if Ripple wins, it will have no recourse against the Security and Exchange Commission because of a gap in the law that must be closed.
The Federal Tort Claims Act, on the other hand, is incredible in that it prevents lawsuits against federal agencies like the Security and Exchange Commission for deliberate misconduct, such as defamation, abuse of process, or malicious prosecution, a common-law intentional tort intended to deter meritless claims.
And an article published on Law360 said that the Security and Exchange Commission’s actions, including a broad claim coupled with aggressive discovery motions, strongly suggest that the Security and Exchange Commission expected Ripple to fold quickly and beg for a settlement and that its legal arguments would never be properly tested in court.
They were completely wrong. Ripple is fighting back with all of its might, and if the Security and Exchange Commission’s broad arguments are successful, they might wipe out billions of dollars worth of stored value across a wide range of cryptocurrencies that are in the same boat as XRP. In light of the fact that the Security and Exchange Commission provided no advice despite several inquiries, with the exception of Hinman Security and Exchange Commission failed to give fair notice of whether XRP is a security.
The trial for the Security and Exchange Commission enforcement-based regulation is now underway. As a result of the Security and Exchange Commission’s actions in the lawsuit, major issues have been raised concerning what recourse defendants and holders of XRP may have against an intrusive government agency that has misused the authority entrusted to them by Congress.
Unfortunately, there is currently no recourse available, no matter how ill-founded or malicious the Security and Exchange Commission’s actions were, it is sad to see that the doctrine of sovereign immunity, as well as the Federal Tort Claims Act, shield the Security and Exchange Commission and its officers from any consequences for intentional wrongdoing on the part of the agency.
It is possible that the prosecution is intentional, according to Ripple Garlinghouse, who said in court that it is “an abuse of prosecutorial authority.” It is necessary for Congress to alter the Federal Tort Claims Act in order to ensure that the Security and Exchange Commission and its officials are no longer shielded by the idea of sovereign immunity, no matter how malevolent their acts are.
And as more evidence of the Security and Exchange Commission’s misuse of power comes to light, the number of people calling for reform of the Federal Tort Claims Act is certain to rise. The fact that they were aware of their legal protection no matter what they did could only indicate that their goal was to bring Ripple and XRP crashing down along with them.
In addition, it is intended to impede the worldwide deployment of the technology. So, what are your thoughts? Will somebody stop the regulators? Also, The cryptocurrency market has seen a significant decline. As a result of a big cryptocurrency meltdown, all of the gains earned in the previous three weeks have been erased, sending the value of digital tokens tumbling to dangerously low levels in the process.
What is the reason for the market downfall?
The value of cryptocurrencies plummeted overnight, with the most popular ones losing as much as LUNA had the most significant decline out of the top ten crypto coins, falling by 13 percent. Avalanche dropped by 12.6%, Solana by 13%, and Cardano dropped by 12%. Bitcoin and Ethereum, the two most valued cryptocurrency tokens, had significant losses.
Ethereum was down 9.7 percent, while Bitcoin has also seen a significant drop of almost eight percent. Given that cryptocurrency prices, notably bitcoin, had been stable for the last three weeks, even when the current collapse has sent shockwaves across the market. Bitcoin price reached a new high of $48,200 on March 28, but it has since fallen to a new all-time low only a few weeks later.
The crypto market is being scared, according to analysts, as markets throughout the globe lose their luster. However, no one has come up with a convincing explanation for why prices have fallen so precipitously. As Russia continues to attempt to avoid economic sanctions in the wake of its unlawful invasion of Ukraine, additional limitations on cryptocurrencies might be a contributing factor to the recent dip in value.
The European Union outlawed the use of bitcoin services in Russia just before the weekend, just in time for the holiday weekend. With effect immediately, deposits to Russian cryptocurrency wallets, including prominent cryptocurrencies like bitcoin, Ethereum, BNB, XRP, Cardano, Solana, and luna, are no longer permitted.
After the European Central Bank president Christine Lagarde warned that cryptocurrencies presented a “threat” to attempts to rein in Russia’s economy, the Russian government issued a statement. The European Commission declared that the EU would impose “a bar on the provision of high-value crypto-asset services to Russian customers.” It was also said that “this would help to the closure of possible loopholes.”
Well, The month of April has not started off well for cryptocurrency, as XRP has fallen in value with Bitcoin, Ethereum, and other altcoins. However, Ripple has scored yet another significant victory in its protracted legal battle with the Securities and Exchange Commission of the United States of America. Following a ruling by Judge Sarah Netburn, the Securities and Exchange Commission was ordered to divulge Hinman’s email correspondence.
And Judge Sarah Netburn has refused any request for review of her decision on the deliberative process privilege rule. According to James K, a former federal prosecutor, this is unquestionably a significant victory for Ripple. “The Security and Exchange Commission seeks to have it both ways, but the Speech was either intended to reflect agency policy or it was not. Having insisted that it reflected Hinman’s personal views, the Security and Exchange Commission cannot now reject its own position.”
The Security and Exchange Commission has now been ordered to produce the email, as well as a draft of the Ethereum speech delivered by former senior Security and Exchange Commission official William Hinman, among other documents, according to the court order issued. Hinman had said at a conference in San Francisco in 2018 that Ether, the native coin of the Ethereum network, was not a security.
Going even further, the Security and Exchange Commission said that the DPP is protecting these materials from public disclosure. The court, on the other hand, disagreed, stating that the emails were neither pre-decided nor deliberative. As a result, Ripple filed an appeal for reconsideration and clarification, disputing the verdict.
In the most recent sessions, the court said that the Security and Exchange Commission is attempting to downplay the fact that it has always remained out of the political debate. The Securities and Exchange Commission (Security and Exchange Commission) believes that cryptocurrency rules take place apart from and also in tandem with speech restrictions. Now, the court has stated that the Hinman speech was not an agency communication, and as a result, discussions are not protected by the DPP, as previously stated.
However, if the emails include a critical connection to agency discussions, the Security and Exchange Commission may choose not to provide that particular email draught. Make sure to subscribe and give us a thumbs up! Thank you so much for watching. See you in the next video. Kindly note that the prices of cryptocurrencies frequently change, so by the time you read this article, it might have changed to a whole new value.
Disclaimer: The information provided in this article does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the content as such. The content in this video is for educational purposes only and hence should not be considered financial advice. Do conduct your due diligence and consult your financial advisor before making any investment decisions.