Summary

• XRP has increased by 4% in the last 24 hours following Ripple’s response to the SEC’s letter of supplemental authority.
• Ripple’s lawyer Michael K. Kellogg argued that the SEC’s Commonwealth case argument does not apply to the legal battle between Ripple and the financial regulator.
• XRP is the best-performing top 10 asset in the last 30 days, outperforming Bitcoin (BTC) and Ethereum (ETH) by more than 20%.

Ripple’s Response to SEC Letter

An April 13 letter by Ripple’s lawyer Michael K. Kellogg countered that the SEC’s Commonwealth case argument does not apply to the legal battle between Ripple and the financial regulator. The SEC previously wrote that its enforcement action against investment firm Commonwealth Equity Services provides an additional authority for court to reject Ripple’s fair notice defense claims. Kellogg said the Commonwealth case was “an out-of-circuit, unpublished district court opinion” and lacked contemporaneous evidence to support its defense. He noted 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.” Kellogg also argued that there is evidence showing that “the SEC was not only aware of widespread regulatory confusion but helped sow it by repeatedly offering (and then disclaiming) vague guidance that differed from Howey test.“ He concluded that The Court has already rejected“SEC’s reliance on them as their argument had an “unbroken chain of district court decisions rejecting fair notice defenses“.

XRP Outperformance

XRP has increased by 4% in 24 hours following Ripple’s response toSEC letter. XRP is also doing well compared to other top ten assets as it outperformed Bitcoin (BTC) and Ethereum (ETH) by more than 20% in last 30 days according to CryptoSlate data.

Jeremy Hogan Arguments

Earlier this week pro-XRP lawyer Jeremy Hogan highlighted why SEC’s classification of XRP was wrong. Hogan arguedthat token doesn’t fit into „investment contract“ category espousedby financial regulator. He further added with his arguments regarding why this classification does not hold true for XRP token saying „because it lacks all four elements required under Howey Test: 1) Investment of Money 2) In a Common Enterprise 3) With Expectation of Profits 4) From Efforts of Others“.

Conclusion

The recent surge in price for XRP follows Ripple’s response to U.S Securities and Exchange Commission(SEC)’s letter regarding motion for summary judgement on their legal battle over classification of XRP token as security or not . While pro-XRP lawyers have put forth strong arguments highlighting why this classification should be reversed,it remains uncertain whether these will hold up in court or if they will be accepted by regulators at large going forward making this a pivotal moment for future courseof crypto industry as a whole .